Output in Germany's industrial sector shrank in October after two months of solid gains, dampening hopes of an industry-led recovery in Europe's largest economy.
Output shrank by 1.8% compared to the previous month, according to seasonally-adjusted preliminary figures published by Germany's economy ministry.
The figures were much worse than economists had expected, with analysts surveyed by Dow Jones Newswires forecasting a gain of 1.0%.
One bright spot in the data was an upwards revision of last month's output to 3.1%. Preliminary figures had shown a gain of 2.7%.
The data represents the second piece of bad news in as many days for the country's giant industrial sector.
On Monday, figures showed that industrial orders posted the first drop for eight months in October, falling by 2.1%, also disappointing analysts who had forecast a rise.
Germany, one of the world's largest exporters, has been battered by the recession as demand for its goods has screeched to a halt amid slumping global demand.
This year, the government expects to suffer its worst downturn since World War II despite pumping in some €80 billion in stimulus packages to revive the ailing economy.
Chancellor Angela Merkel, who was re-elected in September, hopes that sweeping tax cuts will pep up the economy but her room for manoeuvre is constricted by a record mountain of debt.
