Flash Comment - Germany: Industrial activity disappointed in February

German industrial production (IP) was flat for February in month-on-month terms (at5.8% y/y) and January numbers were revised down from 0.6% m/m to 0.1% m/m. Theconsensus expectation was for a 1.0% m/m increase (6.3% y/y). Looking at the details,we note that production of consumer and intermediate goods declined, while investmentgoods advanced a little. We note that intermediate goods orders continued to advancestrongly, which indicate that intermediate goods production should advance in the comingmonths. Construction advanced marginally but this follows a very large drop in January(down 14.3% m/m). Hence the construction sector is still struggling.