TD Securities analysis team notes that the German IP disappointed significantly in January (-0.8% m/m), after other euro area countries posted strong upside surprises on Friday.

“Component-wise, Manufacturing fell 1.2% m/m, while capital goods were down 2.5%. Energy production was up 3.6% while consumer goods rose 1.5% m/m. Today's disappointment comes against signs that Sales had picked up sharply in the last two months, and many of the sectors held back by previous one-off factors appear to have rebounded, with newfound weakness in the construction and mining sectors.”