Industrial Production in Germany rebounded less than expected in April, the official data showed on Wednesday, suggesting that the manufacturing sector activity is recovering at a slower pace.

Eurozone’s economic powerhouse’s industrial output jumped by 0.7% MoM, the federal statistics authority Destatis said in figures adjusted for seasonal and calendar effects, vs. a 1.0% expected and -.3.7% last.

On an annualized basis, German industrial production dropped 2.2% in April versus a 3.1% decline booked previously.

FX implications

The shared currency is trading on the defensive below 1.0700 on the downbeat German industrial figures.

At the time of writing, EUR/USD is trading at 1.0690, down 0.08% on the day.

About German Industrial Production

The Industrial Production released by the Statistisches Bundesamt Deutschland measures outputs of the German factories and mines. Changes in industrial production are widely followed as a major indicator of strength in the manufacturing sector. A high reading is seen as positive (or bullish) for the EUR, whereas a low reading is seen as negative (or bearish).