German IP Rebounded in March

GERMANY MAR IND PROD +2.5% M/M, +5.1% Y/Y; FEB -1.9% M/M

• German industrial production rose by 2.5% in Mar, stronger than market expectations (BBG: +2.1%).
• This marked the first increase after two successive declines and the highest level since Oct 2020.
• Feb's reading was revised down to -1.9% from -1.6% previously reported.
• Annual production rebounded to 5.1%, after falling by 6.8% in Feb.
• Despite the recent uptick, Mar's output was still 4.3% compared to Feb 2020, the month before the start of the pandemic.
• While the production of consumer and intermediate goods increased by 2.9% and 1.2%, respectively, capital goods output declined by 0.4%.
• Energy output increased by 2.4%, while construction output surged 10.8%.
• Mar's increase was in line with the truck toll mileage index, which rebounded in Mar and is closely connected to IP.
• However, the index declined by 1.6% in April, which bodes ill with future gains of industrial production.

Source: Destatis