German industrial output bounces back

German factory output increased modestly in April, figures published Wednesday showed, as industry in Europe's largest economy reckoned with the impact of the war in Ukraine.

Production was up 0.7 per cent on the previous month, according to the federal statistics agency Destatis, having registered a sharp 3.7 per cent drop in March.

Output fell by 2.2 per cent in April compared to the same month last year, when the coronavirus pandemic weighed more heavily on industry.

Despite the slight rebound in production, April's figures showed that "high energy prices, the Ukraine war and ongoing supply shortages are still having a major impact", said Andrew Kenningham, chief Europe economist at Capital Economics.