German industrial output up 3.7% in May

| July 8, 2009 | 0 Comments

Europe’s largest economy may be emerging from the recession with the news that industrial output rose 3.7% in May compared with April.

While the increase was bigger than the 0.5% analysts had predicted, output in May was still down 19% on an annual basis, according to the economy ministry.

The economy is suffering its worst recession since the Second World War but the news sparks hope that the recession may be nearing an end, particularly as yesterday the ministry reported a rise of 4.4% in May in industrial orders - a leading indicator of future activity.

According to ING economist, Carsten Brzeski, “The recession in the industrial sector is bottoming out.”

However, in related news, unemployment continues to rise in Germany with the latest figures showing that almost 3.5 million people are unemployed.

In addition, last month the Federal Statistics Office reported a severe slump in German exports - the biggest fall since the start of the recession.

Exports plunged 28.7% in April compared with the same month last year falling to €63.8 billion (£55 billion) compared with €89.5 billion in the same month the previous year.

Tags: Economy Ministry, , , , Industrial orders, , , , ,

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