Better outlook for Germany but still slow pace of industrial activity in February

Despite improving signs of economic activity in Germany, the industrial production is expected to have fallen in Feb.

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. 

Societe Generale expects the industrial production 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. 

However, the outlook has improved and a clearer recovery is expected to take hold in Q2.