Commerzbank comments on German industrial output data in February: rebound does not mean continued recovery

Strong growth in Germany’s key manufacturing sector is likely to boost economic growth in the short term despite weak service sector activity, Commerzbank senior economist Solvin said in a report. But he said the recent rebound in factory activity was unlikely to mark the start of a sustained economic recovery, as the hit to growth from sharp global interest rate hikes was likely to intensify in the second half of the year. “It could also put pressure on the construction sector,” Solvan said.