German Industrial Production Recovery Suggests Bottlenecks Are Easing

German industrial production rose more than expected in July after a three-month decline, data showed, in a sign that factories were overcoming supply bottlenecks that slowed the recovery of Europe’s largest economy.

The Federal Statistics Office said industrial production, which includes the construction and energy sectors, increased 1% month-on-month, after declining 1% after the adjustment in June. A Reuters poll indicated a rise of 0.9%.

The production of the manufacturing sector increased by 1.3 percent with the manufacture of more capital and consumer goods. Production in the construction sector increased by 1.1% and the energy sector by 3.2%.