German manufacturing output unexpectedly fell by 0.9 per cent month-on-month in July, data showed, but the economy ministry said production would likely rise in the third quarter.

The ministry’s preliminary output figures contrasted with a recent string of positive data from Germany. Manufacturing orders rose by more than expected in July, bolstered by defence spending, data showed yesterday.

Other data released yesterday showed that German exports increased for a third straight month in July, boosting the country’s trade surplus.