Important developments today:
1. German industrial output picks up
2. Latvia's economy continues on deflationary trend for now
3. Consumer confidence in Indonesia weakens on rising inflation
German industrial output picks up. According to the Ministry of Economics German industrial production picked up in January, with gains of 0.6% over December (m/m), when output fell by more-than 1%. Production in factories increased 0.9% for the month, and was able to offset a sharp 14% decline in construction activity caused by severe winter weather. But January’s production was strongly affected by energy output, which climbed 8.8% for the month as households increased consumption of heat.
The momentum (rolling 3-month average, ch%-saar) of German industrial production slowed over the last two months to just 1.9% from 13% in the third quarter, a main cause of the downdraft in GDP witnessed during the final quarter of 2009. Even as year-on-year output growth turned positive in January, production remains 17% below January 2008 levels, highlighting just how far the industrial sector has to go.
Source: Federal ministry of Economics
Among emerging markets:
In East Asia and the Pacific, Indonesia’s consumer confidence index edged down in February by 2.1% (m/m) as price pressures picked up in the recovering economy, making consumers anxious about food prices in the short run.
In Central and Eastern Europe, Latvia’s inflation fell 4.2% in February compared to prices a year ago, following a 3.1% decline in prices seen in January, pointing to a strengthening deflationary trend, as domestic demand remains suppressed in the country. Industrial output was also weak, falling 1.6% on the month in January.