http://news.bbc.co.uk/hi/english/business/newsid_1321000/1321209.stm Wednesday, 9 May, 2001, 13:46 GMT 14:46 UK Sharp jolt for German economy
The economic outlook for Germany has worsened again as the biggest economy in the eurozone reports a shart fall in industrial output. Data published by the Finance Ministry showed industrial output fell 3.7% in March after having expanded by 0.6% in February. Analysts had been expecting a 1.0% fall.
The data is the latest figure in a recent wave of weak economic statistics, including manufacturing orders and unemployment.
The fall was mainly due to a 13.6% drop in the construction sector as well as the mining sector, which fell by 3.3%, and the manufacturing sector which declined by 3.0%.
Interest rate impact
The figures are expected to increase pressure on the European Central Bank (ECB) to cut its interest rates as the German economy slows.
The ECB is due to meet on Thursday but few economists are expecting a cut to rate levels that have been unchanged at 4.75% since October.
The ECB is the only major central bank in the world not to have loosened its monetary grip in response to the deteriorating global economic conditions.
The US Federal Reserve has cut key rates four times this year to try prevent the economy falling into recession.