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Cold snap hits German official industrial output in February

German industrial output declined in February, weighed down by a slump in construction activity owing to the cold winter weather, official data showed.

Industrial production in February declined by 1.3% from the previous month, the economy ministry said.

That was a steeper drop than expected - analysts had been pencilling in a decrease of 0.5%.

In January, output had increased by 1.2% month on month.

Manufacturing output slipped by 0.4% in February, with output of consumer goods falling by 2.1%. Energy output was up 1.6%, but construction output plunged by 17.1% due to the unusually cold weather, the data showed.

"The noticeable weakening in industrial output was largely due to weather-related factors," the ministry said.

"Experience shows that the construction sector quickly catches up with the onset of a spring," it added.

Data released yesterday showed that industrial orders in Germany inched up in February, buoyed by a rebound in foreign orders.