Modest rise in German July industry output points to slow recovery

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German industrial output rose far less than expected in July, suggesting Europe's largest economy faces a slow return to production levels that preceded the crisis unleashed by the coronavirus pandemic.

BERLIN - German industrial output rose far less than expected in July, suggesting Europe’s largest economy faces a slow return to production levels that preceded the crisis unleashed by the coronavirus pandemic.

A breakdown of the data showed that activity in the construction sector, which had expanded during the lockdown, shrank by 4.3%, dragging on the headline figure. Even excluding the volatile construction and energy sectors, output rose by 2.8%, still lower than the forecast.

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