German industrial production rebounded by a
more-than-forecast 1.6 percent in May, data released Friday showed,
adding to hopes that Europe's biggest economy will escape the
recession hitting other parts of the eurozone.
Figures released by the Ministry for Economics largely canceled out the 2.1 percent slump in April.
Analysts had expected the ministry that total output rose by a more modest 0.5 percent in May.
The figures followed signs that many eurozone members have stumbled into recession as governments across the region implement tough austerity measures to to slash high deficit and debt levels.
"Despite the risks resulting from the eurozone, the chances have grown for a stable second quarter for industrial production (in Germany)," the ministry said.
The May increase was lead by a solid 3.1-per-cent gain in output in the building sector. Output in the manufacturing sector rose 1.8 percent.
On Thursday, the ministry said German industrial orders also rebounded more than forecast in May, gaining 0.6 per cent. Economists had forecast a more modest 0.3 percent increase in total orders.
The rise in orders was driven by a sharp jump in foreign demand resulting from a 7.7 percent surge in demand from eurozone partners.
Analysts expect the statistics office to say Monday that German exports rose by 0.4 percent in May after falling by 1.7 percent in April.
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