Industrial production in Germany contracts again in January.

Data released on Friday morning by the German Federal Statistical Office (Destatis) showed that the country's industrial production has returned to recording contraction in January, at a rate that exceeded market expectations after a surprising recovery last month.

According to the data, Germany recorded a monthly contraction of 2.4% in industrial production during January, while market expectations had anticipated a contraction of only 0.7% in German industrial production. This follows a growth of 1.3% in the country's industrial production during the previous month of December, with the reading revised from a higher growth of 1.5%.

On an annual basis, the data showed a 3.1% contraction in industrial production in Germany during January compared to the same month last year, which is worse than the previous reading for December, which showed a contraction of 2.7%, after the reading was revised from a contraction of 2.8%.

It is worth noting that industrial production measures the output of factories and mines within Germany and that changes in industrial production volume are a key indicator of the strength of the manufacturing sector in the country. A positive reading of the indicator is seen as a positive or bullish signal for the euro, while a low reading is viewed as a negative or bearish signal for the euro in Germany.