Industrial output in Germany fell a seasonally adjusted 2.6pc in December from November, and fell 0.6pc year-on-year when adjusted only for the number of working days, according to preliminary data from the finance ministry. Economists had forecast on average a seasonally-adjusted fall of 1.3pc month-on-month, and a rise of 1.2pc year-on-year. In full-year 2002, industrial output fell 1.6pc compared with 2001, the finance ministry said. The drop in industrial production was due in large part to falling activity in the construction sector, which saw output slide 5.8pc in December from November. These latest figures offer further evidence that the eurozone's largest economy is staring recession in the face. Last month the German government cut its annual growth rate forecasts from 1.5pc to just 1.0pc and predicted that the annual jobless average would total 4.2 million, or 10pc of the working population. //www.fxcentre.com