German official industrial output slips in June

6th August 2010, Comments 0 comments

German industrial output slipped by 0.6 percent in June from the previous month, official data showed on Friday, a sign that the growth of Europe's top economy could be uncertain in coming months.

The economy ministry revised higher however a provisional figure for May to growth of 2.9 percent from an already better-than-expected 2.6 percent.

Construction activity was also weaker meanwhile, losing 0.9 percent on the month following a revised drop of 1.9 percent in May.

On Thursday, the ministry reported that industrial orders had jumped by 3.2 percent in June, with foreign demand driving a significant rebound after a surprise drop the month before.

That result was more than double the figure analysts had forecast.

Also on Thursday, the European Central Bank said the 16-nation eurozone economy should "grow at a moderate and still uneven pace, in an environment of uncertainty," this year.

Germany officially expects its economy to expand by 1.4 percent this year, but many economists and even the finance and economy ministers have mooted a level closer to 2.0 percent.

© 2010 AFP

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