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German industrial output shrank in May

FRANKFURT
German industrial production dropped in May following three consecutive increases, official data showed Monday, suggesting that recovery in Europe's largest economy remains fragile amid an uncertain foreign trade outlook
Industrial production in May fell 1.0% on the month earlier, sharper than the 0.5% fall economists had forecast
The decline was led by a 2.6% drop in construction output which, according to the economics ministry, and contrasts with a sharp increase in April
"The trend in industrial production continues to point up," the ministry said in a statement Manufacturing production in May fell 0.7% on the month, after increasing 1.7% in April
The weakness in industrial production follows an earlier report by the ministry showing that German manufacturing orders in May declined 1.3% on the month as a sharp drop in domestic orders quashed expectations of a recovery in domestic investment
"The recovery in German industry should continue at a slightly muted pace," the ministry said
Industrial output in May fell 1% compared with the year-earlier month in seasonally and calendar adjusted terms
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