Industrial production in Germany grows and exceeds expectations in December after two months of contraction.

Data released on Thursday by the German Federal Statistical Office (Destat) showed a recovery in the country's industrial production in December, exceeding market expectations after two consecutive months of contraction.

According to the data, Germany recorded a growth in industrial production of 1.5% month-on-month in December, while market expectations predicted a growth rate of 0.5% for German industrial production, following a contraction of 0.4% in November. This figure was revised from a larger contraction of 1.0%.

On a year-on-year basis, the data indicated a contraction in industrial production in Germany of 2.8% in December compared to the same month of the previous year, which is slightly better than the previous figure for November, which showed a contraction of 4.2% in German industrial production.

It is worth noting that industrial production measures the output of factories and mines within Germany, and the change in the volume of industrial production is a key indicator of the robustness of the manufacturing sector in the country. A positive reading of the index is viewed as a positive or bullish signal for the euro, while a low reading is seen as a negative or bearish indicator for the euro in Germany.