German May Indus Output -2.4% MM, +0.8% YY

German industrial production fell 2.4% in May in seasonally adjusted terms, bucking market expectations for a rise, data from the Federal Economics Ministry showed Monday.

Economists in a Dow Jones Newswires survey had forecast a rise of 0.5% on the month.

However, the ministry said of the size of the fall, "the current weakening in industrial output may be been exaggerated due to two bridging days."

On the year, industrial output rose 0.8%, the ministry said.

The ministry revised the April data upwards, to a monthly fall of 0.2% and an annual rise of 5.0%. The initial reading had been for a monthly fall of 0.8% and an annual rise of 4.8%.

The headline monthly fall was driven by a setback in the manufacturing sector, where output fell 2.6% on the month in seasonally adjusted terms after declining 0.3% in April. Construction was up 1.1% after a 3.5% fall the previous month.

Output of intermediate goods, part of the manufacturing process, fell 1.8% on the month in May after a fall of 1.9% in April. The production of capital goods fell 3.9% on the month after rising 2.7% in April.

Energy output fell 3.1% on the month after rising 3.5% the previous month.

Average industrial production for the April-May period was 1.8% lower, driven by a 9.7% slump in construction output.