Germany's March industrial production (IP) is expected to have risen by 0.3% on a monthly basis (0.5% y/y), from 0.2% prior.
IP has been weak since June 2014, mostly reflecting uncertainty from adverse geopolitical events, but has shown signs of improvement since the beginning of the year.
The IFO manufacturing climate index (manufacturing is the largest component of IP) rose for the sixth consecutive month in April.
Manufacturing PMI came in at 52.1 in April, slightly down from March, reflecting slower increases in both production and new orders.
Increased demand for industrial goods is due to both stronger domestic and foreign demand. The weaker euro and lower energy prices represent tailwinds for IP in the near term.
