Germany and Spain made a reasonable start to 2015: Capital Economics

Quotes from Lloyds Bank:

- January's industrial production data (released on Friday) suggest that Germany and Spain made a reasonable start to 2015, although there are few signs that the drop in the euro exchange rate is prompting a strong recovery. 

- Germany's 0.6% m/m rise in industrial production came as a relief after data released yesterday revealed a sharp drop in industrial new orders in the same month. Elsewhere, Spanish production rose by 0.2% in January, pushing the annual growth rate up to 0.4%. 

- However, this will not change the picture of a recovery that is far too slow to erode the spare capacity in the economy and reduce the risk of deflation.