German industrial output ticks up

German industrial production recovered slightly in November, official figures published Monday showed, as fears of an energy crisis eased although prospects for Europe's top economy still looked gloomy.

Output rose 0.2 percent on the previous month, according to preliminary data from federal statistics agency Destatis.

Updated figures showed that production dropped 0.4 percent in October, a steeper fall than initially reported.

"Business sentiment has brightened recently, and in the coming months, easing material bottlenecks could provide further support for the industrial economy," the economy ministry said in a statement.

"Nevertheless, the prospects for industrial activity in the first quarter remain subdued." Moscow's invasion of Ukraine and subsequent move to slash crucial gas exports sent inflation soaring in Germany, which relied heavily on Russian energy before the war.

Germany is heading for a recession this year but government relief measures, including an energy price cap, mean the downturn is now expected to be less severe than earlier feared.

Despite the slight improvement in November's figures, analysts said it did not indicate a major turnaround.

"Industrial activity in November provided more evidence that the economy did not fall off a cliff in the fourth quarter but was not strong enough to avoid a contraction either," said Carsten Brzeski, head of macro at ING bank.

"The former growth engine of the German economy is stuttering and improvement is not really in sight."