German industrial output rose 0.8% in June from the previous month, comfortably beating economists' forecast of a 0.2% increase, in a rare piece of good news for a manufacturing sector that has struggled for much of the past two years.
The gain was led by the automotive and chemicals sectors, both of which had been among the hardest hit by weak export demand and high energy costs. DAX futures rose in early trading following the release.
Still, analysts cautioned against reading too much into a single month of data, noting that order books remain thin and that a sustained recovery would likely depend on stronger demand from China and the rest of the eurozone.
