German February industrial production dropped 2.9% m/m. We had been looking for a decline of 4.0% m/m and our median was -3.5% m/m, so data were better than expected and January numbers were revised up to -6.1% m/m from -7.5% m/m reported initially. Manufacturing production dropped 3.3% m/m and construction production rose 1.9% m/m in February. Overall production was still down 9.2% in the two months to February and down a staggering 20.6% from February last year, which highlights the extent of the economic slowdown. Q1 GDP looks even weaker than the -1.6% q/q reported for Q4 last year but forward looking confidence indicates start to signal a stabilization for the second half of the year.