German exports surge in December but industrial output slump clouds recovery outlook
German exports rose in December behind demand from the U.S. and China. However, a sharp drop in industrial output suggests the recovery remains fragile.
Insights:
Official December data released today for Germany 
DE showed a significant divergence in economic indicators, as German exports rose 4.0% month-on-month while German industrial production fell 1.9% month-on-month. The figures provide mixed signals for Europe’s largest economy, with the jump in exports far exceeding the 1% increase predicted in a Reuters poll. Conversely, the decline in industrial output was much sharper than the 0.3% fall expected by analysts, complicating assessments of the timing and strength of a potential industrial recovery.
DE showed a significant divergence in economic indicators, as German exports rose 4.0% month-on-month while German industrial production fell 1.9% month-on-month. The figures provide mixed signals for Europe’s largest economy, with the jump in exports far exceeding the 1% increase predicted in a Reuters poll. Conversely, the decline in industrial output was much sharper than the 0.3% fall expected by analysts, complicating assessments of the timing and strength of a potential industrial recovery.
