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Strong rise in German industrial output signals solid Q2 growth

BERLIN, July 7 (Reuters) - German industrial production rose more than expected in May, data showed on Friday, boosting expectations that factories will support growth in Europe's biggest economy in the second quarter.

Industrial output jumped by 1.2 percent on the month, data from the Economy Ministry showed. That was the fifth consecutive monthly increase and beat the consensus forecast in a Reuters poll for a 0.3 percent gain.

The upturn was driven by a surge in energy production and factories producing more capital and consumer goods.

The April reading was revised slightly down to an increase of 0.7 percent from a previously reported rise of 0.8 percent.

Data published on Thursday had shown strong foreign demand pushed up industrial orders in May, though the increase was less pronounced than expected. Still the economy ministry said it expected the sector to continue gathering momentum. (Reporting by Michael Nienaber; Editing by Michelle Martin)