Germany's industrial output worse than estimates in March

Germany's industrial output shrank more than market estimates in March due to a decline in production in the automotive industry, according to official data released on Monday.

Industrial production dropped 3.4% from the prior month in March, following an upwardly revised 2.1% hike in February, the German statistical authority Destatis said in a statement.

The market forecast was a 1.3% monthly decline for March.

The manufacturing of motor vehicles and parts, Germany's largest industrial sector, plunged 6.5% from a month earlier after a surge of 6.9% in February.

"Decreases in the manufacture of machinery and equipment (minus 3.4%) and the production in construction (minus 4.6%) also accounted for a large share of the significant decrease in total production," Destatis said.

Meanwhile, energy production increased by 0.9% from the prior month.

On an annual basis, Germany's industrial production rose 1.8% in March.