German machine-tool sector raising output: federation
The German machine-tool sector, a major exporter for Europe's biggest economy, expects output to increase by three percent this year, it said on Tuesday, revising an earlier outlook upwards.
The VDMA sector federation had previously expected machine-tool production to stagnate in 2010.
But output grew in April and May for the first time in 15 months, according to a VDMA statement that cited data from the German statistics office Destatis.
Although production in the first five months of 2010 was lower than that of a year earlier, orders have now picked up on average by more than 25 percent, with foreign demand showing particular strength, the federation said.
The results contrast widely across different branches of the sector however, ranging from decreases of 30 percent to increases of the same order, it noted.
The German economy has rebounded from its worst post-war recession but some economists say the growth cycle may have peaked and they forecast weaker overall economic activity in the second half of the year.
© 2010 AFP