Germany industrial activity still weak in May

Industrial output is still failing to lift off convincingly in Germany this Spring. 

Despite the weak momentum, the average for Q2 should improve compared with Q1, providing evidence that manufacturing is likely to gradually complement consumption asgrowth driver this year. 

"In May, industrial production is expected to have increased by 0.2% mom in May, following 0.9% mom in April", says Societe Generale.

A key reason for the weak momentum in the industry lies with still weak global demand and trade. Survey indicators point to a small improvement in June and July, and GDP growth in Q2 is expected in the order of 0.5% qoq, added Societe Generale.