Germany's industrial production unexpectedly rose for a second straight month in September, adding to the positive sentiment provided by the orders data released earlier.
Production grew a calendar and seasonally adjusted 0.2 percent from the previous month, preliminary figures from the Federal Statistical Office showed on Wednesday. Economists had forecast a 0.1 percent decline.
August's 0.3 percent decline was revised to a 0.1 percent gain.
Figures released on Tuesday showed that factory orders unexpectedly rose for a second straight month in September, led by domestic demand, suggesting improvement in the economic momentum ahead.
Capital goods production rose 0.9 percent, while intermediate goods output dropped 1 percent and consumer goods production decreased 0.3 percent.
Automobile production increased 3.8 percent, after significant slowdown.
Excluding energy and construction, industrial production was unchanged from the previous month.
Energy production decreased 3.3 percent, while construction output grew 2.2 percent.
On a year-on-year basis, production grew 0.8 percent following a revised 0.2 percent gain in August. Economists had expected a 0.2 percent gain.
The economy ministry said production decreased 0.9 percent year-on-year in the third quarter. Industrial production decreased 1.4 percent, while construction output grew 0.5 percent.
After the automobile industry overcomes the dampening caused by the transition to a new emissions test cycle, industry production is likely to see a revival towards the end of the year, the economy ministry said.
Despite the positive data in September, the German industry likely slowed in the third quarter with the purchasing managers showing slower rates of expansion in manufacturing over the past few months.
"Already released data for the eurozone as a whole and several member states has suggested that either the first estimate for the eurozone [GDP growth] was too low or the German economy almost came to a standstill," ING Bank economist Carsten Brzeski said.
"All available data suggests that the latter seems to have been the case."
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