German industrial output rebounds in June

Germany's industrial output increased more than expected in June, but failed to lift the overall industrial performance in the second quarter, official data showed on Monday.

German industrial production increased monthly by 0.8 percent in June, following a decrease of 0.9 percent in May, said German federal statistics office Destatis. Economists had forecast a monthly growth of 0.7 percent.

"The increase, however, comes too late to make a disappointing quarter for the German industry a good one," said Carsten Brzeski, chief economist at ING DiBa bank.

The industrial production over the whole second quarter declined by one percent, data from the German Economy Ministry showed. Construction output, which dropped by 4.3 percent, was the main drag.

According to the ministry, the poor performance in the construction sector was mainly due to the mild winter.

"With stagnating industrial activity, thinner order books and dropping inventories, chances remain low that the former backbone of the German economy will quickly return to its old strength," Brzeski said.

Earlier data showed that German factory orders decreased by 0.5 percent in the second quarter from the first three months of 2016.

The German economy grew by 0.7 percent, mainly thanks to buoyant private consumption, government spending on refugees and construction investment.

Economists and the German central bank expected the economic growth to have slowed down in the second quarter, but rebound in coming months.

Source : XINHUA