Germany's industrial sector is facing challenges as recent data reveals a decline in output. According to Jin10, Ralph Solveen from Commerzbank reported that Germany's industrial production fell by 1.9% in December, indicating that the sector is unlikely to contribute to economic growth at the start of the year. Despite a significant increase in factory orders, which rose by 7.9% in December, this has not yet translated into higher actual output. Solveen noted that long-depressed sentiment indicators have not shown signs of a rapid rebound. However, the increase in orders, partly driven by strong demand from the German government, offers some hope for a recovery in production later this year. "Nevertheless, we still expect the recovery of the manufacturing sector and the overall German economy to be very moderate," Solveen added.