German industrial output rose at its fastest rate in nine months in July and by twice as much as economists expected, albeit after very weak June data, Economy Ministry figures showed today.
Output rose by 1.6 per cent in July, double the 0.8 per cent economists had predicted, after a revised 1.5 per cent monthly fall in June.
"It's a strong rise. It clearly shows that the tentative signs of a global economic slowdown have not yet hit German factory orders or production," said Mr Thorsten Polleit at Barclays Capital in Frankfurt.
"This data make for a very good start into the third quarter."
The ministry said the rise in July industrial production in Europe's largest economy was driven by a 1.8 per cent increase in manufacturing output. Energy output rose 0.8 per cent and construction output was up 0.3 per cent .
The Economy Ministry said average industrial production over the two months June and July was a seasonally adjusted 0.2 per cent lower than in April-May.
The output data are consistent with positive Reuters purchasing management index data. The July output component, at 59.1, was higher than in June and was above the unchanged mark of 50 for an 11th consecutive month. It dipped to 56.2 in August.