Industrial output in Germany fell by more than 1pc in March, increasing pressure on the European Central Bank to cut interest rates. Industrial production a seasonally declined by 1.1pc in March from February, according to preliminary data from the Economy and Labour Ministry. The fall was sharper than the 0.8pc decline expected, but the ministry said it expects the figures to be revised upwards. The European Central Bank yesterday left its key lending rates unchanged but indicated that it may lower rates in the future, stating that it would "monitor developments closely". Having forecast that the bank would not move on rates this week, analysts now say a cut is very likely in June, although some economists warn that deflationary fears may limit the extent of the cut.
Earlier this week, Germany's Labour Office said the jobless total rose for a thirteenth straight month in April, pushing the unemployment rate to 10.7pc from 10.6pc. German companies are cutting jobs amid slowing demand abroad for goods; the strength of the euro has hampered export growth to the US by making goods from the eurozone more expensive. //www.fxcentre.com