(Bloomberg) -- German industrial production unexpectedly plunged in May — the latest sign that the recovery in Europe’s biggest economy may be faltering.

Output fell 2.5% from the previous month, the statistics service said Friday. While April was revised up to a slightly positive reading, May’s outcome was below all 28 estimates in a Bloomberg survey of analysts.

Cars, machinery production and electrical equipment all saw drops of more than 5%.

The figures come on the back of a release Thursday showing a surprise slump in factory orders in May. The latest numbers for German investor sentiment also fell short of expectations, as did a gauge of private-sector business activity.

“Along with the latest weakening of business expectations in manufacturing, the persistent declines in orders suggest rather muted momentum in the coming months,” the Economy Ministry said. “Production will only stabilize when global trade recovers further and demand for industrial goods revives.”

Industry has been the weak spot in Germany’s economic rebound. High interest rates and weak foreign demand have been particularly painful for export-oriented firms, with the Ifo institute’s Business Climate Index wrong-footing analysts in June by dropping.

Still, Germany’s economic recovery “is continuing,” the Bundesbank said in its latest monthly report, predicting expansion of 0.3% this year driven mainly by services and private consumption. Friday also saw the government seal a delayed 2025 budget including measures to boost growth.

With inflation coming down and wage growth still strong, the second half of the year is expected to see firmer growth. Consumer-price gains slowed to 2.5% in June, feeding hopes that the European Central Bank will cut interest rates further.

--With assistance from Kristian Siedenburg and Joel Rinneby.

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