German industry is struggling to recover as the Middle East war heightens uncertainty and raises costs, data reported by AFP suggests, hitting Europe’s top economy amid a prolonged slump.

Industrial production fell 0.7 per cent in March versus February, federal statistics office Destatis said, while Germany’s monthly trade surplus of 14.3 billion euros ($16.8bn) was at its lowest since May 2023, with imports rising much faster than exports.

Taken together the data suggested that Germany’s economy was growing more slowly than the previously reported rate of 0.3pc in the first quarter, ING bank analyst Carsten Brzeski said.