FRANKFURT - German industrial production unexpectedly jumped in October, official data showed on Monday, the latest sign that Europe's crisis-wracked top economy may be turning a corner.
Factory output rose 1.8 percent month-on-month, according to preliminary data from federal statistics agency Destatis, after a 1.1 percent rise in September.
The positive result, boosted by the construction and the machinery sectors, was far better than a 0.55 percent decline forecast by analysts surveyed by financial data firm FactSet.
It was the first time since early 2024 that German industrial output had increased two months in a row, noted ING economist Carsten Brzeski.
"The second consecutive monthly increase suggests that industrial production has finally reached a period of bottoming out," he said.
But the economy ministry struck a more cautious tone, noting that domestic orders were strong but foreign demand remained weak.
"Despite the predominantly positive production trend in September and October, no noticeable upturn in industrial activity is expected at the end of the year," it warned in a statement.
According to Destatis, production in the construction sector rose 3.3 percent in October and in the manufacture of machinery and equipment, it was up 2.8 percent.
But it dipped 1.3 percent in the crisis-hit auto sector.
October's increase was the latest positive sign after industrial orders -- an indicator of future business activity -- jumped in the same month, driven by strong demand for defence goods as Germany rearms.
Chancellor Friedrich Merz has hugely increased public spending on defence and infrastructure to get the economy moving again after two years of recession, although he faces criticism that it is moving slowly.
The German government is forecasting the economy will eke out meagre growth of 0.2 percent in 2025, before picking up speed in 2026 on the back of the spending bonanza.