German manufacturing output unexpectedly fell by 0.9 per cent month-on-month in July, data showed today, but the Economy Ministry said production would likely rise in the third quarter as a whole.
The seasonally adjusted fall contrasted with the Reuters consensus forecast for a 1.5 per cent rise in July. June's data was revised up to show a rise of 0.8 per cent, after a fall of 0.1 per cent was previously reported.
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.
Earlier today, data showed that German exports increased for a third straight month in July, boosting the country's trade surplus.
The Economy Ministry said the output data was negatively impacted by holiday effects and gave a positive outlook.
"In the third quarter as a whole, given the base level of production and the continuing gains in orders, a rise in industry output is to be expected," the ministry said.
A breakdown of the latest data showed that energy production slid by 3.9 per cent on the month, construction output fell 2.3 per cent, and manufacturing output was down 0.5 per cent.
Reuters
