Output surges
July 8, 2009![Robot arm on an assembly line](https://static.dw.com/image/3465981_800.webp)
The Economics Ministry said overall output in Europe's largest economy jumped 3.7 percent in May from the previous month, saying that "industrial production may have bottomed out."
A breakdown of the output data showed that manufacturing of capital goods, which includes cars, leapt 8.3 percent in May on the month, in part due to the government's cash-for-clunkers car trade-in scheme, which pays drivers 2,500 euros to scrap an old vehicle and buy a new one.
Commerzbank analyst Ralf Solveen said that foreign demand for German cars also helped and that it was "presumably not just due to the government incentives."
On a year-to-year basis, however, adjusted overall industrial output fell by nearly 18 percent, indicating how much the economy had contracted in the last year.
gb/AFP/Reuters
Editor: Chuck Penfold