German industrial production rose by 1.2 percent in May compared to the previous month, supported by gains in the automotive, energy, and pharmaceutical sectors, according to data released by the federal statistics office on Monday.
The monthly rise came after a revised 1.6 percent drop in April. Production in the automotive sector increased by 4.9 percent in May, while energy production grew by 10.8 percent. Pharmaceutical output also rose by 10 percent.
The rise in May pushed production slightly above the average for the first quarter. The three-month comparison showed production from March to May was 1.4 percent higher than in the previous three months.
The increase in pharmaceutical production was partly due to higher demand from the United States ahead of possible new tariffs. Other sectors also showed more resistance to trade-related pressures than expected.
Industrial orders, however, fell by 1.4 percent in May after recent gains. The drop was linked to weaker demand from within the euro zone.
The German government has approved a tax relief package aimed at supporting investment and lifting the economy after two years of contraction. Growth in gross domestic product is not expected in the second quarter, but some improvement is likely in the following quarters.
Concerns remain about trade tensions, the stronger euro, and weather conditions affecting river transport. Despite these challenges, recent data suggest a possible early-stage recovery in the manufacturing sector.
