Better outlook but still slow pace of German industrial activity

Despite improving signs of economic activity in Germany,  industrial production is likely to have decreased by 0.2% mom in February, with a big drop in construction, following an increase of 0.6% mom in the previous month. 

The manufacturing PMI has picked up in March but remained relatively sluggish before that with the ratio of orders to inventory remaining stable over the past four months. Weakness in trade data at the start of the year is also likely to be reflected in industrial production. 

"The outlook has improved and we expect a clearer recovery to take hold in Q2" said Societe Generale in a report on Tuesday