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Cold spell held back German output

German industry - Building slump hits figures
German industry - Building slump hits figures

Official figures show that German industrial output rose by a smaller than expected 0.6% in January from December, as cold weather shut down construction work.

Economists had expected an increase of around 1%, following a revised dip of 1% in December.

In January, the German construction sector ground to a halt as especially cold weather and snow blanketed the country, an economy ministry statement said. It added that there was an 'unusually strong' decline of 14.3% in construction output.

But energy output climbed by 8.8% as businesses and households turned up the heat to stay warm.

On Friday, figures had shown that German industrial orders in January posted a sharp rebound, gaining 4.3% from December in the biggest jump since December 2004. That, along with signs consumption is holding up relatively well, is positive for Germany, where the economy stagnated in the last quarter of 2009.

After suffering its worst post-war recession, with the economy contracting by 5% last year, the government has forecast growth of 1.4% in 2010.