Industrial production in German showed a strong resurgence in the first month of the year after harsh winter weather suppressed activity at the end of 2010, according to Financial Times. The German economics ministry reported a 36.3% increase in construction activity during January from the previous month, more than reversing a 24% fall in activity during December. The strong gain in construction boosted overall industrial production to a 1.8% increase in January after contraction 0.6% the month before.
Economists like Carsten Brzeski of ING saw the dramatic rebound as a clear indication that heavy snow was responsible for the poor December performance, as “The splendor of the recovery has returned.” The data comes on the heels of a report that showed factory orders added 2.9% in January and business optimism has reached the highest levels since reunification. Bundesbank President Axel Weber has also forecast for 2.5% gross domestic product growth in 2011 after a 3.6% increase last year.