German industrial production likely to have rebounded in Q4 2016

German industrial production is expected to have improved in December. In the second half of 2016, confidence rebounded in German industrial sector. Thus, according to a Societe Generale research report, the industrial output is likely to have grown 0.4 percent sequentially in December and by 0.9 percent quarter-on-quarter in the fourth quarter.

Meanwhile, the survey indicators imply that production might rebound further in the first quarter of 2017, with the orders-to-inventory ratio rebounding solidly in January. Therefore, the economic growth in the fourth quarter appears set to have been about 0.6 percent quarter-on-quarter with the GDP expanding 1.9 percent in 2016 as a whole.

Therefore, the German economy continues to be strong at the beginning of this year, with falling unemployment feeding strong domestic economic fundamentals, added Societe Generale.