Greece, Spain Take Toll on German Output; Production Falls 2.2% in April as Demand Wanes

June 6, 2012 7:51 AM EDT
According to new data out Wednesday, German industrial output fell more than expected in April as the fallout from the current debt crisis begins to impact demand in the region.

Germany's Economy Ministry said April production fell 2.2 percent, versus a revised gain of 2.2 percent in March (initial reading was a 2.8 percent increase). Economists were looking for a drop of just 1 percent in the month.

Adjusted production for 2012 is down 0.7 percent, data showed.

Construction output for the month slipped 6 percent, compared to a 26 percent gain in March.

Orders from the 17 nation euro zone fell 4.7 percent in April.

Following a first quarter which saw German GDP grow 0.5 percent, woes over Spanish debt as well as a potential exit from the euro by Greece are hitting home. Though finance ministers from the Group of Seven said there would be support for Spain, no one is sure whether Greece might still leave the union.

The ECB is expected to meet Wednesday, though focus on that meeting will be on expected rate cuts.

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