STOCK MARKET WATCH -- Tuesday, 7 February 2012

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25. German industrial output down 2.9 pct in December

http://hosted.ap.org/dynamic/stories/E/EU_GERMANY_ECONOMY?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2012-02-07-07-50-48

FRANKFURT, Germany (AP) -- German industrial production fell 2.9 percent in December from the month before, according to official data released Tuesday, suggesting the country's economic slowdown could be worse than expected.

The number reported by Germany's statistics agency was below market expectations for output to remain steady.

Signs for the Germany economy, Europe's largest, have been mixed of late. Readings of consumer and business confidence have risen, and industrial orders reported Monday were up as well. That had sent a positive signal that the economy's slowdown will not be as bad as feared and that the bottom might already have been passed.

But Tuesday's figures cast doubt on those hopes because the industrial sector is the backbone of the country's economic prowess. The statistics agency said it expects a slight fall in output when fourth quarter figures are announced.