German Industrial Production drops by 0.3% MoM in December, a negative surprise

Industrial Production in Germany unexpectedly fell in December, the official data showed on Friday, suggesting that the manufacturing sector is not out of the woods yet.

Eurozone’s economic powerhouse’s industrial output fell by 0.3% MoM, the federal statistics authority Destatis said in figures adjusted for seasonal and calendar effects, vs. a 0.4% increase expected and -0.2% last.

On an annualized basis, the German industrial production slumps by 4.1% in December versus a 2.2% drop registered in November. Markets expected the industrial output to fall by 2.4% in the reported month.

FX implications

The shared currency is pressurizing lows on the downbeat German industrial figures.

At the time of writing, EUR/USD is trading at 1.1428, down 0.14% on the day, having hit the daily lows at 1.1424.

About German Industrial Production

The Industrial Production released by the Statistisches Bundesamt Deutschland measures outputs of the German factories and mines. Changes in industrial production are widely followed as a major indicator of strength in the manufacturing sector. A high reading is seen as positive (or bullish) for the EUR, whereas a low reading is seen as negative (or bearish).