Ger­man fac­to­ries bounce back amid eu­ro­zone malaise

The Daily Telegraph - Business - - Business - By Lizzy Bur­den

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.

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