Strong rise in German industrial output signals solid Q2 growth
Surge in energy and factory production drives output increase
The German economy ministry said it expected the industrial sector to continue gathering momentum. Photograph: iStock
German industrial production rose more than expected in May, data showed on Friday, boosting expectations that factories will support growth in Europe’s biggest economy in the second quarter.
Industrial output jumped by 1.2 per cent on the month, data from the economy ministry showed. That was the fifth consecutive monthly increase and beat the consensus forecast in a Reuters poll for a 0.3 per cent gain.
The upturn was driven by a surge in energy production and factories producing more capital and consumer goods.
The April reading was revised slightly down to an increase of 0.7 per cent from a previously reported rise of 0.8 per cent.
Data published on Thursday had shown strong foreign demand pushed up industrial orders in May, though the increase was less pronounced than expected. Still the economy ministry said it expected the sector to continue gathering momentum. – (Reuters)