German industrial output data released today showing a 0.9 per cent rise in January from December lifted some of the clouds hanging over Europe's leading economy after a week of downbeat news.
The strong figures may indicate that the euro zone is not being as adversely affected by a US economic slowdown as previously thought. A poll of 15 economists had forecast a month-on-month fall of 0.1 per cent, with predictions ranging between a fall of 1.0 per cent and a rise of 1.5 per cent.
The euro was little changed after the data, holding within half a cent of recent one-month peaks around $0.9380.
Year-on-year production rose 6.6 per cent in January from 4.9 per cent in December, a figure also better than the Reuters consensus poll forecast of a rise of 5.4 per cent.
But several analysts noted that output was a lagging indicator of economic performance and the data would not sway them from their view that slowing growth in the United States would weigh on the euro zone.