German industrial production rose more than expected in August, posting its biggest increase since January to rebound from the steepest fall in 23 months last month and signal that the industry sector will contribute to growth in the third quarter.
Industrial output rose by 2.5 percent on the month, data from the Economy Ministry showed on Friday, ahead of the consensus forecast in a Reuters poll for an increase of 0.8 percent.
It was the highest monthly increase since January, when output rose by 2.8 percent. Production had fallen by 1.5 percent in July.
"All in all the results indicate a presumably restrained increase of production in the industry sector in the third quarter," the Economy Ministry said in a statement.
Construction was the only sector to post a drop, falling by 1.2 percent. A 3.3 percent in manufacturing output more than compensated for the fall in construction, the data showed.