German industrial production held steady in May, in a sign the economy is withstanding threats to confidence from the crisis in Greece.
Output was flat after a revised 0.6 percent increase in April the Economy Ministry in Berlin said on Tuesday. The reading compares with the median estimate of economists for a 0.1 percent gain. Output climbed 2.1 percent from a year earlier.
Manufacturers are benefiting from faster growth at home and continued expansion in the euro area even as Greece’s debt crisis threatens the stability of the currency union. An index of economic activity in the euro region is at a four-year high and the Bundesbank raised its forecasts for Germany last month.
Consumer-goods production expanded by 1.3 percent from April, while manufacturing output grew 0.4 percent and production of investment goods increased by 0.4 percent, the report showed. Energy output fell 3.1 percent and construction slid 0.5 percent.
Greece’s future has become even more uncertain after voters on Sunday rejected the terms of a bailout proposal, leaving the euro region’s leaders to determine whether the country can remain in the currency zone. They are due to meet on Tuesday for an emergency summit.
Data on Monday showed German factory orders, a gauge of future output, slipped 0.2 percent in May after two months of gains. A separate report last month showed business confidence in Germany fell in June.
Andreas Rees, an economist at UniCredit SpA in Frankfurt, said the decline in orders was “not a deterioration driven by changing fundamentals.”
“The most probable scenario going forward is that German companies will resume momentum,” he said. “The euro-zone recovery is intact” and weaker sentiment was triggered by Greece and “does not herald a fundamental turnaround in the business cycle,” he said.