Thursday, Commerzbank analyst Simon Junker said the fall in German industrial production revealed by the Federal Ministry of Economics and Technology supports the bank's forecast that the biggest Eurozone economy shrunk 3.5% in the first quarter.

Junker noted that the German economy will most likely not stabilize markedly until the end of the year as the bad prospects in manufacturing indicate a negative economic growth even for the second quarter.

The analyst said since less orders today imply less production tomorrow, the situation in manufacturing is set to remain gloomy. Based on the ministry's new order data released yesterday, Junker said, We expect industrial production to have fallen by around 2% in March, and production to remain on its downtrend in Q2.

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