German industrial output for May is biggest decline in 2 years

German industrial production for the month of May posted its biggest fall in nearly two years, adding to signs that global tensions have weighed on Europe's largest economy, dpa reported.
Output fell by a more-than-forecast 1.8 per cent in May to post its third monthly decline. The figure was a reversal from a first snapshot of the data four weeks ago. The Ministry of Economics on Monday also revised its April figures to show a drop of 0.3 per cent.
"German industrial production dropped sharply in May, showing that earlier risk factors like slowing emerging market economies, including China, and geopolitical conflicts do have an impact on the German economy," said ING Bank economist Carsten Brzeski.
The ministry had previously reported a 0.2-per-cent gain in May industrial production.
But the ministry said Monday: "Sentiment indicators and the overall economic fundamentals suggest the upswing in industrial production will continue during the course of the year after a weaker second quarter."