German factory output falls 1.1% in July

German factory output fell 1.1% in July, official data showed, underscoring the fragility of Europe's biggest economy.

The federal statistics agency Destatis reported the drop in industrial production on Monday. A FactSet poll of analysts had forecast a 0.5% fall.

Destatis said a production pause at a car plant likely weighed on the figure, without naming the company. BMW had said in June that it would spend a little over five weeks overhauling its plant in Leipzig.

Destatis also revised June industrial production down to stagnation from an initial estimate of a 0.2% rise.

ING bank analyst Carsten Brzeski said the data showed how fragile Germany's cyclical recovery remained, adding that the economy was not yet out of trouble.

The figures came after recent indicators had raised hopes that Germany's economy was improving after years of stagnation. Chancellor Friedrich Merz has made reviving growth a priority and has pledged major borrowing and spending, especially on infrastructure and defence.