During February, German industrial output rebounded as production rose by 0.5 per cent from the previous month when it had contracted by 0.6 per cent. This adds to signs that Europe’s largest economy is now stabilising after contracting in the fourth quarter. Economists polled by a Bloomberg News survey had forecasted a 0.3 per cent gain.

Compared to a year earlier, production dropped 1.8 per cent when adjusted for the number of working days. Given these latest figures, the German economy has most likely grown in the first quarter of this year after it contracted 0.6 per cent in the last quarter of 2012.

In the UK, data released by the Office for National Statistics shows that, during February, manufacturing rebounded, as factory output rose 0.8 per cent from the previous month, when it fell 1.9 per cent. This rise is twice as much as forecast by economists in a Bloomberg News survey.

Separate data showed the UK deficit in goods widened as exports slipped. The data may ease concern that the British economy will fall back into a triple-dip recession as manufacturers struggle with the continued slump in the euro area and lackluster demand at home.

Finally, in the US, the minutes of the March meeting of the rate-setting Federal Reserve Open Market Committee showed that the cost and benefits of quantitative easing (QE) were extensively discussed.

There were a wide range of views, ranging from a few members in favour of ending the programme relatively soon, others who suggested the programme should be tapered at some point over the next several meetings, while some other members were of the view that purchases of bonds could continue at their current pace through the end of the year. In summary, a majority seemed to have been in favour of curbing QE before the end of the year.

This article was compiled by Bank of Valletta plc for general information purposes only.