German industrial production dips 0.5 percent in February
BERLIN (AP) — German industrial production declined 0.5 percent in February, despite strong construction activity.
The figures released Wednesday by the Economy Ministry compared with an increase of 2.3 percent — revised downward from 3.3 percent — in January.
Experts had predicted a steeper February decline in industrial production for Europe's biggest economy.
Economist Carsten Brzeski at ING-DiBa in Frankfurt described the figures as a disappointment, noting that "only the construction sector remains an almost inexhaustible source of growth."
Mild weather, cheap loans and a lack of affordable housing in major cities has fueled a construction boom in Germany.
The strongest drops occurred in the energy production, capital and consumer goods sectors.