German industrial output recovers on pick-up in investment

German industrial output recovered in April on pick up in investment in the Eurozone’s largest economy, unveiling signs that the economy is on a growth path despite an atmosphere of pessimism over the possible course of Brexit referendum.

Seasonally adjusted output rose 0.8 percent from March, after dropping a revised 1.1 percent, data released by the Economy Ministry in Berlin showed Tuesday. The reading, which is typically volatile, compares with a median estimate for a 0.7 percent increase by economists surveyed by Bloomberg.

Investment-goods production expanded 2.2 percent in April after contracting for the previous two months, the report added. Manufacturing rose 1.1 percent, with energy output increasing at the same rate, while construction fell 1.7 percent from March. Meanwhile, production rose 1.2 percent from a year earlier.

"Sentiment among manufacturing companies has brightened somewhat in recent months," the Ministry said in a statement.

The Ministry further added that manufacturing is expected to remain on a moderate recovery path after foreign trade showed weakness in the second half of 2015.