German Industrial Production declined this December, suggesting signs that the recovery of Europe's largest economy has slowed down, Germany which had emerged from its worst economic depression since the Second World War in the second quarter of 2009. Due to a rise in exports because of government funded stimulus programs which had resulted in factories to increase production.

Growth has been predicted to slow down further as increasing unemployment and expiring stimulus would result in dampening of domestic spending. Industrial production which has turned out to be weaker than expected has shown signs of recovery moderating to a slower pace.

Growth slowed to 0.2 percent in the fourth quarter of last year from 0.7 percent in the third, according to another Bloomberg survey of economists. That report is due from the Federal Statistics Office on Feb. 12.

Manufacturing output fell 2.8 percent in December from November, today's report showed. Intermediate goods output decreased 4.3 percent, while investment goods production dropped 3.4 percent. Construction declined 2.6 percent in December and energy output fell 0.2 percent. A government report showed on Thursday that German new manufacturing orders fell 2.3% in December.

The euro dipped to 1.3680 after the report before rising to 1.3708 at 12:31 p. m. in Frankfurt.

According to forecasts economy will grow 1.6 percent this year and 1.2 percent in 2011. Germany's economy shrank 5 percent last year.