By Don Nico Forbes
Industrial production in Germany unexpectedly rose for a second consecutive month in May despite higher energy costs and operational uncertainty due to the conflict in the Middle East.
Output was 0.9% higher on month, following an uptick of 0.2% in April, Germany's statistics agency Destatis said Tuesday.
A consensus of economists polled by The Wall Street Journal expected a decline of 0.2%.
The rise in output follows an uptick in factory orders in May, which could point to a recovery in activity ahead. From June, production is also expected to have been supported by easing tensions between the U.S. and Iran, with declining oil and gas costs providing some relief to Germany's energy-intensive industrial sector.
Write to Don Nico Forbes at don.forbes@wsj.com