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German Industrial Output Falls Less than Expected in March

May 8 (Reuters) - German industrial production declined in March, although less than expected thanks to construction, data from the federal statistics office showed on Wednesday.

Industrial production fell by 0.4% compared to February, a smaller decline than the 0.6% fall predicted by analysts polled by Reuters.

The less volatile three-month on three-month comparison showed production was 1.0% higher from January to March than in the previous three months, the statistics office said.

Production increased by 1.7% in February on the month, less than the 2.1% before the revision of the data.

Demand in manufacturing remains weak. German industrial orders fell by 0.4% month-on-month in March, on a seasonally and calendar adjusted basis, data showed on Monday.

In April, 39.5% of manufacturing companies reported a lack of orders, up from 36.9% in January, a separate survey of the Ifo Institute showed on Wednesday.

"The lack of orders is hampering economic development in Germany," said Klaus Wohlrabe, head of surveys at Ifo.

Production in manufacturing - which excludes energy and construction - was down 0.4% on the month.

There was a 4.2% decrease on the month in energy production in March, while production in construction grew by 1.0% from the previous month, Destatis data showed.

Reporting by Mateusz Dobrzyniewski and Maria Martinez, Editing by Rachel More, Andrey Sychev and Lincoln Feast.

Source: Reuters


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