Germany's industrial production expanded at the fastest pace in seven months in July, driven by strong growth in construction.
Industrial production rose 0.7 percent month-on-month, reversing a revised 0.9 percent drop in June, data from Destatis showed Monday. The decline for June was revised from -1.4 percent.
This was the fastest growth seen so far this year. Nonetheless, it was slower than the expected growth of 1.1 percent.
Excluding energy and construction, industrial output rose by 0.3 percent. Energy production grew 1.9 percent in July, while construction output increased 3.2 percent.
Within industry, production of capital goods grew 2.8 percent, whereas the production of intermediate goods declined by 0.8 percent and consumer goods dropped by 3.7 percent.
On a yearly basis, industrial production gained 0.5 percent in July, faster than the 0.2 percent rise economists had forecast, but slower than the 0.9 percent increase seen in June.
The economy ministry said industrial activity continues to remain positive. High demand from abroad filled the order books.
The Purchasing Managers' survey showed that manufacturing activity logged its biggest growth in 16 months in August. Production expanded at the fastest pace in five months amid sharp rise in new orders.
However, official data released last week showed a reduction in factory orders in July due to the fall in foreign demand. Factory orders slid 1.4 percent, the biggest fall since January.
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