German industrial production rises in June, signals rebound in growth

Germany’s industrial production rose during the month of June, signaling a rebound in factory output, which in turn is indeed, good news for the economy’s growth momentum.

Production, adjusted for seasonal swings, rose 0.8 percent from the previous month, when it dropped a revised 0.9 percent, data released by the Ministry of Economy in Berlin showed Monday. The reading, which is typically volatile, compares with a median estimate for a 0.7 percent gain according to a Bloomberg survey of economists. Output gained 0.5 percent from a year earlier.

Further, factory output rose 1.5 percent in June from the prior month, driven by a 3.5 percent surge in investment-goods production, according to the report. Also, construction and energy output fell during the period.

"The muted intake of manufacturing orders speaks for a rather moderate upward development in the coming months. Manufacturers’ assessment of business conditions remains good," Bloomberg reported, citing, the Ministry of Economy, according to an e-mailed statement.

However, market participants noted that manufacturing growth in June was unsurprising, as May witnessed a large number of public holidays cut into output, especially in the automotive sector. Meanwhile, looking ahead, observers saw little prospect of a resurgence in the German economy over the second half of the year.