(MENAFN- Arab Times) FRANKFURT Jan 9 (Agencies): Falling industrial output and exports suggest Germany's current economic weakness is not over yet nevertheless Europe's biggest economy looks set to regain momentum this year analysts said on Friday. Coming hot on the heels of a unexpectedly sharp drop in factory orders earlier this week the economy ministry calculated in regular data that German industrial production shed 0.1 percent in November pulled down by declining activity in the energy and construction sectors.
At the same time the federal statistics office Destatis estimated that German exports fell by 2.1 percent in November causing the country's trade surplus to contract sharply. 'November's hard data indicate that Germany's phase of economic weakness is not yet over after meagre growth of 0.1 percent in the third quarter' said Natixis economist Johannes Gareis. Nevertheless at the same time a lot of the October data had been revised upwards taking the sting out of the disappointing November numbers analysts said. 'Early indicators such as order intake and the Ifo business climate index create hope that the German economy will soon pick up at a stronger rate again' said Commerzbank economist Marco Wagner. BayernLB economist Stefan Kipar agreed. Taking the October and November data together 'the indications are that gross domestic product (GDP) growth was positive again in the fourth quarter' he said. Retail sales were up strongly and higher employment and rising wages 'provide enough ammunition to keep private consumer expenditures going' he said. Official 2014 GDP data were scheduled for release next week and 'we expect growth in 2014 to be 1.5 percent' compared with just 0.1 percent in 2013 Rees said. Berenberg Bank economist Christian Schulz was likewise confident that Germany would post 'modest output growth in the final quarter of 2014'. 'Although the aftermath of the confidence shock triggered by Russia's aggression against Ukraine will probably still weigh on investment domestic demand and in particular consumption look set to drag output upwards' Schulz said. Also: ATLANTA: German luxury automobile maker Mercedes-Benz said Tuesday that it's moving its US headquarters from New Jersey to Atlanta in part to be closer to its manufacturing facility in Alabama. Georgia Gov Nathan Deal said the company accepted an incentive package from the state but said he couldn't discuss the details yet. The Fulton County Development Authority met briefly Tuesday to discuss its own incentive package for Mercedes' estimated $93 million facility but provided no details. The decision comes after weeks of lobbying some of it public by New Jersey officials who sought to keep the company in Montvale at a campus that's about a five-minute drive from BMW's North American headquarters. About 1000 jobs are to be moved starting in July. The company said it will move first to a temporary facility in Atlanta before moving into a new space in about two years. Deal and Georgia economic development officials would not discuss the location Mercedes is pursuing in metro Atlanta. Mercedes said it would announce more details later this month Mercedes-Benz USA President and CEO Stephen Cannon said in a statement that the company will benefit by being closer to its growing base of customers in the Southeast as well as its port in Brunswick Georgia and its manufacturing facility in Alabama. Cannon praised New Jersey and the company said some operational areas will remain in Montvale and Robbinsville 'The state has worked tirelessly with us as we evaluated our options' he said in a statement. 'Ultimately though it became apparent that to achieve the sustained profitable growth and efficiencies we require for the decades ahead our headquarters would have to be located elsewhere.' He also said the quality of life schools and cultural options in Atlanta were reasons to move there. Other recent Georgia projects in the automotive industry include the construction of a new US headquarters for Porsche near Hartsfield-Jackson Airport and Kia's first US manufacturing facility about 75 miles southwest of Atlanta. Executives have cited access to the world's busiest airport for employee travel and to the state's ports for shipping. Deal credited the state's access to that infrastructure and an insistence on cooperation between economic development utility and education officials for the results. Deal said the most memorable portion of the state's pursuit was being told that the automaker was seriously considering Georgia for its US headquarters. Deal said Mercedes-Benz approached Georgia officials several months ago. 'The prestige associated with that name is exciting to me' Deal said. New Jersey Gov Chris Christie had a series of meetings and calls with Cannon to try to keep the company in New Jersey said Michael Drewniak a spokesman for the governor.
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