Industrial Production in Germany unexpectedly declined in May, the official data showed on Friday, suggesting that the manufacturing sector recovery is dwindling.

Eurozone’s economic powerhouse’s Industrial Output dropped 0.2% MoM, the federal statistics authority Destatis said in figures adjusted for seasonal and calendar effects, vs. 0.1% expected and 0.3% previous.

The annual German Industrial Production climbed 0.7% in May versus a 1.6% increase seen in April.

FX implications

The shared currency is holding gains below 1.0900 against the US Dollar following the downbeat German industrial figures. The pair is adding 0.09% on the day, as of writing.