Bottom line:
- German commercial production increased by 1.0% in January, while manufacturer costs were up 0.2%.
- Commercial production increased for the very first time in 9 months, lining up with current trade information signifying an enhancing need environment.
- Next up, Eurozone GDP and work figures before the necessary United States Jobs Report.
In this post:
On Friday, the German economy remained in the spotlight. German commercial production and manufacturer costs gathered financier interest.
German Industrial Production
Commercial production increased by 1.0% in January after moving by 2.0% in December. Financial experts anticipate commercial production to increase by 0.6%.
According to Destatis,
- Production in building leapt 2.7% month-on-month after moving by 3.1% in December.
- The chemical market (+4.7%), food market (+5.9%), and equipment upkeep and assembly (+11.1%) added to the boost in heading production.
- The car sector saw production tumble by 7.6% month-on-month.
- Production in market, leaving out energy and building, increased by 1.1%.
- There were likewise increases in the production of durable goods (+4.0%) and intermediate items (+4.4%).
- Production of capital items decreased by 2.1%, with energy production down 3.7%.
- Commercial production decreased by 1.5% from November 2023 to January 2024.
- Year-on-year, commercial production fell by 5.5%.
German Producer Prices
German manufacturer rates increase by 0.2% month-on-month in January after decreasing by 1.2% in December. Financial experts anticipate manufacturer rates to increase by 0.2%. Significantly, manufacturer costs increased for the very first time in 5 months.
Manufacturer rates were down 4.4% year-on-year in January after decreasing by 5.1% in December. Economic experts anticipate manufacturer costs to fall by 6.6% year-on-year in January.
According to Destatis,
- Energy costs moved by 11.7% year-on-year in January, adding to the less significant decrease in manufacturer rates.
- Rates for non-durable durable goods increased by 1.1% year-on-year, with resilient durable goods rates up 1.6%.
- Capital items rates increased by 3.0%, with costs of automobile, trailers, and semi-trailers (+2.4%) adding to greater costs for capital products.
German Economy and the ECB
Financial indications from Germany continued to signify a Q1 2024 financial recession. The month-on-month numbers lined up with current trade information from Germany. German trade information signified a significant enhancement in the need environment, contrasting with factory orders.
The most current information supported the ECB Staff modifications to inflation and development projections and a June ECB rate cut.
EUR/USD Reaction to German Economic Indicators
Before the information from Germany, the EUR/USD was up to a low of $1.09422 before increasing to a high of $1.09557.
In action to the numbers, the EUR/USD increased to a high of $1.09510 before falling to a low of $1.09435.
On Friday, the EUR/USD was down 0.04% to $1.09438.
080324 EURUSD 3 Minute Chart Next Up
On Friday,
