FRANKFURT (AFP) ― German industrial output rose sharply in March driven by a strong showing in construction, official data showed on Tuesday, after cold winter weather hit production in February.

Industrial production increased by 2.8 percent from February, the economy ministry said in a statement, providing a sunnier outlook for output in the coming months, as analysts said it eased recession fears for Europe’s top economy.

The result was much bigger than expected by analysts polled by Dow Jones Newswires who had penciled in an increase of one percent.

The fall in February output was also revised upwards. It slid 0.3 percent, final figures showed, compared with the provisionally forecast drop of 1.3 percent.

Construction led the way with a 30.7-percent jump in March, the ministry said. It had fallen by nearly 17 percent due to a cold snap in February.

Consumer goods output showed a 3.0-percent rise, while production of capital goods grew by two percent.

For the two-month period of February-March, industrial production increased by 1.7 percent compared with December-January, it said.

The ministry said the figures for March revealed a “catching up” on February’s output but added that industrial activity was also again picking up speed.

“With that, the prospects have noticeably improved for the industrial economic situation,” it added.

Analysts reacted cautiously to the latest data.

“March’s sharp rise in German industrial production reduces the risk that the economy is already in recession,” Jennifer McKeown, of Capital Economics, said in a written statement.

“But the underlying picture is still one of a sharp slowdown in the sector which will leave GDP growth muted at best this year,” she added.

Christian Schulz, of Berenberg Bank, pointed out that with the rebound in March, industrial production in the first quarter of 2012 was unchanged from the fourth quarter of 2011.

“Without construction, it even increased slightly. A strong decline of German GDP in Q1 is thus unlikely,” he said.