Production in Germany climbed 1.3 percent on the month in July as factories churned out 3.8 percent more capital goods and 2.2 percent more durable consumer goods while construction activity increased by 1.9 percent.

The headline figure came in well above the consensus forecast in a Reuters poll of 44 economists for a stagnation in July and beat even the highest forecast for a 1.0 percent rise.

"Industrial output has picked up a bit, helped by the manufacturing and construction sectors," the ministry said in a statement.

"Industrial orders remain stable this year to date. While sentiment is subdued, surveys suggest it has slightly improved again and this points to industrial production remaining robust."

The data for June was revised upwards to a fall of 0.4 percent from a previously reported drop of 0.9 percent.

(Reporting by Michelle Martin and Sarah Marsh, editing by Gareth Jones)

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