Another solid month to underscore a roaring performance for German industry in 2017.
Industrial production rose 2.2 per cent in Europe’s largest economy in February – defying expectations of a slight contraction following a strong start of the year.
German industries have been reaping the benefits of a brightening global economy, powered along by healthy domestic and international demand over the last few months. Industrial production also expanded 2.2 per cent in January, according to Destatis, while factory orders rebounded from a soggy start to the year in February, with month on month growth of 3.4 per cent.
Separate official trade figures also out today showed another swelling in the country’s overall trade balance which is €19.9bn in surplus on the back of climbing exports in the continent’s powerhouse economy.
The trade balance grew from €14.9bn and another beat (forecast: €17.7bn). Goods exports rose 3.1 per cent compared to February last year at a value of €102.4bn, while imports also climbed 3.7 per cent.
Germany’s economy has been firing on all cylinders, with unemployment at its lowest level since reunification in 1990 and growth expanding by its best pace in six years in 2016.
Its trade surplus has been the subject of a number of high profile complaints – most notably from the US economic adviser Peter Navarro who has accused Berlin of exploited a “grossly undervalued” currency to boost its competitiveness.