Output surges
July 8, 2009
The Economics Ministry said overall output in Europe's largest economy jumped 3.7 percent in May from the previous month, saying that "industrial production may have bottomed out."
A breakdown of the output data showed that manufacturing of capital goods, which includes cars, leapt 8.3 percent in May on the month, in part due to the government's cash-for-clunkers car trade-in scheme, which pays drivers 2,500 euros to scrap an old vehicle and buy a new one.
Commerzbank analyst Ralf Solveen said that foreign demand for German cars also helped and that it was "presumably not just due to the government incentives."
On a year-to-year basis, however, adjusted overall industrial output fell by nearly 18 percent, indicating how much the economy had contracted in the last year.
gb/AFP/Reuters
Editor: Chuck Penfold