World Economy

German Factory Output Falls

German Factory Output FallsGerman Factory Output Falls

German industrial production declined less than forecast in February as flagging global trade forced factories in Europe’s largest economy to curb output despite strong domestic demand. Production, adjusted for seasonal swings, fell 0.5% from the prior month after advancing a revised 2.3% in January, data from the Economy Ministry in Berlin showed on Wednesday. The reading, which is typically volatile, compares with a median estimate for 1.8% decline in a Bloomberg survey of economists. The gauge rose 1.3% from a year earlier. The report underscores challenges facing German industry as factory orders unexpectedly declined in February, and the Bundesbank warned weakening demand from China and other emerging markets could damp growth momentum in the second quarter.