German Industry Gets Some Relief as Production Rises in May

(Bloomberg) -- German industrial production saw a slight pick-up in May -- a rare sign of resilience as manufacturers in Europe’s largest economy struggle with global trade tensions and subdued demand.

Output gained 0.3% on the month, just short of economists’ estimates for a 0.4% gain. While the increase is welcome, it claws back only a fraction of the 2% drop recorded in April. Data on Friday showed a plunge in factory orders in May, suggesting the industry-led slowdown may continue.

German troubles linked to both the car industry and its reliance on exports have weighed on growth in the wider euro region. The protracted economic weakness has pushed policy makers at the European Central Bank to consider adding more monetary stimulus, and one official said last week that it’s no longer possible to consider the downturn temporary.

The industry figures showed manufacturing of investment goods and consumer goods led the gains in output in May. Construction fell 2.4%.

--With assistance from Kristian Siedenburg and Nicholas Comfort.

To contact the reporter on this story: Carolynn Look in Frankfurt at clook4@bloomberg.net

To contact the editors responsible for this story: Paul Gordon at pgordon6@bloomberg.net, Fergal O'Brien

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