German industrial production surges in March

Porsche factory German industry been doing much better than its counterparts in southern Europe

German industry recorded a surprise surge in output in March.

The total volume of output from the country's factories, power stations and building sites rose a seasonally-adjusted 2.8% in the month, according to official data.

That was well ahead of economists' expectations for a 0.8% rise.

Rising demand for consumer goods, as well as a significant rebound in activity in the construction sector, lay behind the strong result.

The industrial production data added to the picture of a robust German economy diverging from its struggling neighbours in southern Europe.

Separate data on Monday showed that German industry benefited from a 4.8% jump in orders from outside the eurozone in March, whereas demand originating from inside the eurozone stagnated.

Meanwhile, according to industrial surveys in April published last week, the German economy continued to expand, with growth in the services sector accelerating, even as the rest of the eurozone appeared to fall back into recession.

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