German industrial production unexpectedly dropped in June as a result of weaker performances by the construction and machinery sectors and calendar effects caused by public holidays. Exports also dropped more than expected.
The Economy Ministry said Friday that production in Europe's biggest economy was down 1.4 percent compared with the previous month. Economists had expected a 0.3 percent gain.
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In a separate report, the Federal Statistical Office said that exports dropped 1 percent — worse than the forecast 0.3 percent decline — while imports were 0.5 percent lower.
Germany's trade surplus slipped to 22 billion euros ($24 billion) from 22.8 billion euros in May.
UniCredit economist Andreas Rees described the drop in production as a "statistical fluke" rather than providing any evidence of an impact from slowing growth in China.