Germany March Industrial Output Falls -0.7% vs +0.5% Exp, Trade Surplus Narrows to €14.3bn, Weighs on Germany 40

Germany's March industrial output plunged 0.7% m/m against +0.5% forecasts, while the trade surplus sharply narrowed to €14.3bn from €19.6bn on 5.1% import surge versus 0.5% export growth, capping a week of mixed signals that reinforce economic weakness. The period opened with April manufacturing PMI softening to 51.4 from 52.2 and services PMI contracting to 46.9—the fastest in 3.5 years—with composite at 48.4; a +5.0% industrial orders beat offered brief relief before construction PMI tumbled to 42.1. These data heighten Q2 GDP contraction risks amid inflation and supply pressures, pressuring Germany 40 and euro-area assets.