German industrial production jumps in February, as expected

Industrial output in Germany jumped at the beginning of the year even as data released the day before pointed to a sharp 'pay back' next month.

Total industrial production rose by 2.8% month-on-month in January, helping to nudge the year-on-year rate of advance to 0.0% from -0.1%.

Economists had penciled in a rise of 2.7%.

Production of capital goods soared by 6.1% over the month, consistent with data for December showing a jump in demand for so-called 'big-ticket' items.

However, figures released on 7 March referencing the month of February revealed a notable - and wholly unexpected - slowdown in orders for capital goods.

"Overall, a solid start to the year for German manufacturers, consistent with upbeat survey data," said Claus Vistesen, chief Eurozone economist at Capital Economics.