German industry output rebounds at end of weak Q2

BERLIN (Reuters) - German industrial production rose slightly more than expected in June, sounding a positive note at the end of a weak second quarter when a slowdown in construction held back output.

Industrial output rose by 0.8 percent on the month, data from the Economy Ministry showed on Monday, above the consensus forecast in a Reuters poll for an increase of 0.7 percent.

"Given a subdued development in incoming orders, a rather moderate upward development in the industrial sector is to be expected in the coming months," the Economy Ministry said in a statement.

The May reading was revised up to a fall of 0.9 percent from a drop of 1.3 percent previously reported. In the second quarter as a whole, industrial output contracted by 1.0 percent.

The ministry said a 4.3 percent drop in construction output in the second quarter was weather related after a mild winter, but that the conditions for the sector remained positive.

(Writing by Paul Carrel; Editing by Michelle Martin)