German Industrial Output Falls in March

        Industrial production in Germany fell in March, despite expectations of a slight increase, official data showed Thursday.
        In adjusted monthly terms, industrial output declined by 0.5% versus expectations of a 0.2% rise in a Dow Jones Newswires poll.
        Quarterly growth, however, showed signs of strength. The country's economy ministry said that production in the first quarter grew 1.3% from the previous three months, following growth of 0.7% in the fourth quarter.
        The ministry said production trends remained positive, but that manufacturing momentum would likely slow in the second quarter because of a moderation in new orders. This is especially true in construction, the ministry said, as the mild winter likely will restrain a typical spring rebound.
        The data follows the publication of manufacturing-orders data for Germany which showed a sharp and unexpected decline of 2.8% in March, with euro zone orders pushing down the index.
        The report Thursday showed that production in manufacturing fell by 0.4% while construction output was down 2.2% on the month. Energy production rose by 1.8%. In yearly adjusted terms, total industrial production was 3% higher in March.
        France, one of the euro zone's other major economies, also reported lower-than-expected industrial-output data. French industrial production fell 0.7% on the month in March, official data showed Wednesday. Experts said that this was consistent with flat economic output in the first quarter. This differs from Germany, which experts believe grew at a strong clip in the first three months of the year.
        William Horobin contributed to this article.
        Write to Todd Buell at todd.buell@wsj.com
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        (END) Dow Jones Newswires

        May 08, 2014 03:50 ET (07:50 GMT)

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