- Greg Fuzesi, an economist at J.P. Morgan
German industrial production unexpectedly dropped for a second consecutive month in December, while exports and imports also declined, indicating that the Euro zone's number one economy ended last year on a weak footing. German industrial production fell 1.2% in December from the preceding month, a sign that the German economy is feeling the effects of a deteriorating global outlook. The retreat came at a time when record-low jobless rate and low fuel costs encouraged consumer spending, but slowing growth in China and emerging economies are offsetting those positive trends.
Separate report from the Federal Statistics Office showed that seasonally-adjusted exports dropped 1.6% in December, while imports declined 1.6%, narrowing the nation's trade surplus to 18.8 billion euros. For 2015, Germany logged a new record trade surplus of 247.8 billion euros, up from 213.6 billion euros in the preceding year. The German government trimmed its economic growth outlook for 2016 to 1.7% in January, down from an earlier estimate of 1.8%. Moreover, a slowdown in global demand might trigger another revision. However, strong domestic consumption is expected to drive the Europe's biggest economy this year.
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