German industrial output flat in July on weak energy sector

BERLIN (Reuters) - German industrial production remained flat in July as slightly increased output in manufacturing and construction was not enough to compensate for a plunge in the energy sector, data showed on Thursday.

The unchanged reading, according to data released by the Economy Ministry, compared with a consensus forecast in a Reuters poll of analysts for a 0.6 percent gain and followed a fall of 1.1 percent in June.

The ministry said that industrial production was "very dynamic" in the first half of the year and lost momentum in the summer. Indicators are pointing to a continuation of the industrial upswing, albeit at a slower pace than in the first six months, it added.

Data published on Wednesday had shown that weak domestic demand drove a surprise fall in industrial orders in July, a rare sign of weakness in Europe's largest economy less than three weeks before federal elections.

(Reporting by Michael Nienaber, editing by Emma Thomasson)