"German factories are still doing quite well, but we'll see some skid marks as a result of the euro region's debt crisis in the coming months"
- Andreas Scheuerle, an economist at Dekabank
German industrial production rose by more than expected in May, a sign that Europe's largest economy continues to outpace peers. Production increased 1.6 per cent in May, after declining 2.1 per cent the previous month, said the Economy Ministry on Friday.
"German factories are still doing quite well, but we'll see some skid marks as a result of the euro region's debt crisis in the coming months," said Andreas Scheuerle, an economist at Dekabank in Frankfurt.
"In the euro area, everything points toward recession and the global economy has slowed to an extent that it can't compensate for the weakness in Europe."
European stocks extended losses the same day. The Stoxx Europe 600 Index lost 0.98 per cent to 254.40. Germany's DAX Index fell 1.92 per cent and France's CAC 40 Index retreated 1.88 per cent.
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