German factories bounce back amid eurozone malaise
GERMAN factory output clocked up a record monthly increase in May in the latest sign that Europe’s industrial powerhouse is over the worst of the coronavirus downturn.
Production rebounded 7.8pc after falling a revised 17.5pc in April, but remained below pre-pandemic levels. Output in May was still 19pc lower than in February.
Meanwhile, the European Commission has predicted that the single currency’s economy will plunge deeper into recession this year and rebound less steeply next year than has been thought in May.
Forecasters at the commission, having previously predicted a 7.7pc downturn this year and a 6.3pc rebound, are now braced for a record 8.7pc contraction this year before a 6.1pc rise in 2021.
The revision was necessary because it was taking longer than planned to lift lockdowns, the commission said.
Germany was an exception, however. The commission revised its May forecast of a 6.5pc downturn this year to a 6.3pc drop.