Data released on Monday morning by the German Federal Statistical Office (Destatis) showed that the country's industrial production returned to growth in February, at its highest rate in 5 months and exceeding market expectations after experiencing a surprising contraction the previous month. According to the data, Germany recorded a 2% month-on-month increase in industrial production in February, while market expectations had forecast only a 1.5% growth in industrial production. This came after industrial production in Germany had grown by 1.5% in January, with the previous reading revised from a larger contraction of 2.4%. On an annual basis, the data showed a 1.6% contraction in Germany's industrial production in February compared to the same month last year, which is worse than the previous reading for January, which had shown a 2.2% contraction after being revised from a 3.1% contraction. It is noteworthy that industrial production measures the output of factories and mines in Germany, and changes in the volume of industrial production serve as a key indicator of the robustness of the manufacturing sector in the country. A positive reading of the index is viewed as a bullish signal for the euro, while a low reading is seen as a bearish signal for the euro in Germany.
