Debt crisis hits German industrial output in June

Industrial output in Germany declined in June, as the debt crisis increasingly makes itself felt on Europe's biggest economy, official data showed on Wednesday.

Industrial production declined 0.9% in June compared with May, the economy ministry said. That was more or less in line with expectations.

Construction output fell by 2% in June and manufacturing output was down 1%.

Energy output, on the other hand, rose 1.2%, the data showed.

In May, output rose 1.7% month-on-month.

The weak output data adds to the growing gloom over Germany, which had long seemed to be spared the worst of Europe's long-running debt crisis.

Just a day earlier, factory orders showed a bigger-than-expected fall of 1.7% in June as the eurozone's woes weigh on demand.

“June's German industrial production figures provide further evidence that the overall economy is likely to have tipped into recession in the second quarter,” said Capital Economics economist Jonathan Loynes.