German industrial output bounced back in May, data showed today, suggesting that factories in Europe's largest economy are gathering steam again after a weak start of the year.
Data from the Statistics Office showed output increased by 2.6%, the highest rise since November.
The reading beat a Reuters forecast for a rise of 0.3% and was only the second increase so far this year.
But the figure for April was revised to a fall of 1.3% from a previously reported fall of 1%. The ministry put down the fall in April to holidays.
"The combination of a healthy backlog as well as a comprehensive level orders in May signal that the development in the manufacturing sector remains modestly positive," it said in a statement.
Earlier this week, data showed that industrial orders had surged by 2.6% in May after four consecutive monthly drops.
The recent figures dispel concerns about growth in Europe's largest economy and support expectations that a consumption-driven upswing will continue this year albeit at a slower pace than last year when the economy expanded by 2.5%.
Cold weather, a flu outbreak and holidays were named as the main source for the weak data in the first four months of the year.
This coincided with fears that restrictive trade measures championed by the US President Donald Trump were clouding the outlook for the German economy, whose export sector relies on free trade for growth.
A breakdown of the output data showed that activity in the consumer goods and construction sectors was most vibrant.
Analysts said the positive data bodes well for the growth prospects in the second half of the year.
They said that after a long period of disappointments, this week finally brought some rays of light to the German economy.
It increasingly looks as if the economy is in a transition towards more normal growth rates, they added.
