German industrial output edges higher in July: ministry

8th September 2010, Comments 0 comments

German industrial output edged 0.1 percent higher in July from the June level, adjusted data showed on Wednesday after a sharp drop in orders suggested that the economy could be cooling down.

Analysts polled by Dow Jones Newswires had forecast a gain of 1.0 percent in industrial output.

The economy ministry confirmed that this measure of output had slipped by 0.6 percent in June.

The data indicated thyat the German economy was slowing down slightly following record quarterly growth of 2.2 percent in the second quarter of the year.

"It was to be expected that industrial production assumed a more moderate rhythm," an economy ministry statement said.

The ministry forecast however that "the process of industrial recovery would continue, though at a slower pace."

On Tuesday, the figure for German industrial orders in July dropped sharply after a strong rise the month before.

Orders fell by 2.2 percent on the month, ministry data showed, following an upwardly revised gain of 3.6 percent in June.

A breakdown of the industrial production data showed that output of industrial goods stagnated but that construction advanced by 0.9 percent.

Germany officially expects its economy to expand 1.4 percent this year but many economists and the central bank have mooted a level closer to 3.0 percent.

© 2010 AFP

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