German industrial output stagnates on lockdown

FRANKFURT AM MAIN: German industrial production was flat in December compared to the previous month as pandemic restrictions weighed on Europe's top economy, official figures showed Monday.

Federal statistics agency Destatis said industrial output expanded 1.5 percent in November according to revised figures.

The closely watched indicator fell 1.0 percent year-on-year and was down 2.5 percent in November.

Germany in mid-December imposed another partial lockdown, shutting schools and all non-essential businesses.

In January, the measures were extended until at least mid-February and tighter rules on working from home were imposed.

However, contrary to during the first wave of the pandemic early last year, factories remain in operation.

"The figure of zero percent may not seem spectacular but is a sign of strength given the partial lockdown in place since December," economist Jens-Oliver Niklasch at LBBW bank said.

Last week, industrial orders data -- pointing to future activity -- fell in December for the first time in seven months as the Covid-19 restrictions squeezed demand.

Orders declined 1.9 percent compared with November but were still 6.4 percent higher than in December 2019, Destatis said.

They were also 2.6 percent higher than in February 2020, before the first pandemic restrictions came into force.