German official industrial output gains 0.9 percent in April

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German industrial output rose by 0.9 percent in April from the level in March, the economy ministry said on Tuesday, a day after industrial orders for April posted the second strong gain in a row.

Analysts polled by Dow Jones Newswires had forecast industrial production by the biggest European economy to show an increase of 0.3 percent on the month, following a rise of 4.3 percent in March.

A breakdown of the data showed construction gained 2.6 percent, a ministry statement said, continuing its rebound from a harsh winter, while manufacturing output grew 0.5 percent owing to stronger demand for intermediate goods used to make finished products.

Consumer goods production declined by 1.2 percent however, the result of a "boomerang effect" from strong increases in March, the statement said.

On Monday, the ministry said German industrial orders had gained 2.8 percent in April from the previous month, defying forecasts for a slight decline.

Orders had already jumped by 5.1 percent in March, the figures showed, suggesting continued support for output in the coming months.

After suffering its worst post-war recession in 2009, Germany expects economic activity to expand by 1.4 percent this year.

© 2010 AFP

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