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Bad weather blamed for German dip

German industrial production fell by 2.4% in March, figures released today by the economy and  labour ministry showed, dampening optimism over a rebound by the euro zone's biggest economy.

Broken down by sector, construction activity decreased by 14.5%, energy production was down by 5.3% and manufacturing showed a loss of 1.4%.

Ministry officials said there was still an 'upward trend' in  production, blaming bad weather for the fall in construction activity.

The data released on Tuesday nonetheless run counter to recent measures that have shown increasing confidence among German business  leaders and households.