German industrial output rebounded in May from a decline the previous month, provisional data from the economy ministry showed as economists scrutinised prospects for Europe’s biggest economy.

Industrial production was 1.2 per cent higher than in April, exceeding an average analyst forecast of 0.8 per cent compiled by Dow Jones Newswires. That followed a revised decline of 0.8 per cent in April, which the ministry had initially estimated at 0.6 per cent.

Yesterday, the Ministry said industrial orders had gained a monthly 1.8 per cent in May, with an 11.3 per cent gain in domestic orders offsetting a decline of 5.8 per cent from abroad.

It said yesterday that in light of the “rather moderate” increase in orders, output growth “might be calmer in the months to come”.

The German economy is officially expected to expand by 2.6 per cent this year following growth of 3.6 per cent in 2010, but Chancellor Angela Merkel has said the forecast could be raised above three per cent in the coming months.

In Britain, official data showed yesterday that manufacturing rebounded in May by 1.8 per cent on the month, only just compensating for a decline of 1.6 per cent in April.