German industrial production shrank more than expected in June amid declines in manufacturing and energy output, Economy and Labour Ministry data showed on today.
Output at factories, construction sites, utilities and mines dropped 1.9 per cent from the previous month, the biggest fall in 10 months, the ministry said in a preliminary report.
Economists polled by Reuters had forecast a 0.2 per cent month-on-month drop.
The ministry said the data were likely to be revised up "strongly", and the revision would mainly affect figures for the manufacturing sector.
Economists including Mr Gerd Hassel at ING BHF Bank said June's weaker output figures did not represent a downturn in the economy and were more a correction from strong gains in the previous two months.
"Despite the weakness in June, production rose in the second quarter after stagnating in the first," Mr Hassel said.
In May, production increased by a downwardly revised 0.9 per cent and in April by 1.3 per cent. According to Reuters calculations, industrial production advanced 0.6 per cent in the second quarter from the previous three-month period.
Accelerating growth in the US and Asia powered Germany's economy in the first half of this year as demand surged for goods such as cars, machinery and chemicals, compensating for persistently weak domestic demand.