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German industrial production surged in May - MarketWatch

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German industrial production increased sharply in May as restrictions to contain the spread of the coronavirus pandemic eased, data from the federal statistics office Destatis showed Tuesday.

Total industrial output--comprised of output in manufacturing, energy and construction--rose 7.8% in May from April in calendar-adjusted terms. Economists had forecast a 10% increase, according to a poll by The Wall Street Journal.

Compared with May 2019, total industrial output fell 19.3% in calendar-adjusted terms.

In April, German industrial output collapsed by an upwardly revised 17.5%, the largest decline since the beginning of the series in January 1991. Year-on-year, production fell 25% in April, compared with the preliminary figure of 25.3%.

Production in industry excluding energy and construction was up 10.3% in May. In industry, the production of intermediate goods showed a decrease by 0.1%. The production of consumer goods increased by 1.4% and the production of capital goods by 27.6%, data showed.

Production in the automotive sector increased markedly in May, after recording a sharp drop in April. However, it was still by just under 50% lower than in February, Destatis said.

Energy production increased 1.7% and construction was up 0.5%.

Industrial production data follows the largest monthly increase on record in manufacturing orders, published on Monday, which showed a 10.4% increase in orders on an adjusted basis. Despite the strong rebound, the growth rate was below economists' consensus.

Write to Xavier Fontdegloria at xavier.fontdegloria@wsj.com

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