German likely to see weaker industrial activity in May

Euro area industrial output data is sechduled to release on 7th, July. In May, the industrial production of Germany is likely to have increased by 0.2% mom in March, following 0.9% mom in April, according to Societe Generale.

Despite the weak momentum, the average for Q2 should improve compared with Q1, providing evidence that manufacturing is likely to gradually complement consumption as growth driver this year. A key reason for the weak momentum in the industry lies with still weak global demand and trade. 

"Survey indicators, however, point to a small improvement in June and July, and we continue to expect GDP growth in Q2 in the order of 0.5% qoq", estimates SocGen.