German industrial production rose more than twice as much as expected in April, government data showed today.
It is believed the sector was helped by a weather-related jump in construction output and a gain in manufacturing.
However, analysts said a bigger-than-expected decline in April manufacturing orders and recent weak survey readings suggest the economy has slowed markedly in the second quarter from the brisk 1 per cent growth rate in the first.
Industrial production was up 1.1 per cent in April from March after two consecutive monthly declines, the biggest increase since January and double the 0.5 per cent gain predicted in a Reuters poll of economists, the German Economy Ministry said.
Construction output surged 18.6 per cent, catching up with pent-up demand after poor weather in February and March crimped activity, the ministry said. Manufacturing production rose 0.6 per cent after March's 0.4 per cent increase.
The output report follows preliminary data yesterday that suggested German manufacturing orders were hit hard by a slowdown in global demand in April, with foreign orders falling much more sharply than expected.
Germany has been heavily reliant on exports to underpin expansion as persistently high unemployment continues to restrain the consumer spending that accounts for about two thirds of GDP.