German industrial production rose gently in June, official figures published on Friday showed, as analysts worried about the outlook for Europe's largest economy.

Factory output was up 0.4 per cent from the previous month, federal statistics agency Destatis said in a statement.

The agency revised down its estimate for May, showing a small 0.1 per cent drop in production instead of a 0.2 per cent increase as first reported.

Production in Germany was being held back by an "extreme shortage" of components as the war in Ukraine and the lasting impact of the coronavirus pandemic scrambled businesses' supply chains.

Almost three-quarters of companies surveyed by Destatis reported bottlenecks and problems procuring raw materials and components.

A sector-wide breakdown showed that production of capital goods increased by one per cent in June. The output of semi-finished goods increased by 0.3 per cent and that of consumer products was up 1.1 per cent.

The June increase was "not enough to reverse declines earlier in the year and left output well below pre-pandemic levels", said Andrew Kenningham, chief Europe economist at Capital Economics.

Industrial output plunged by 3.7 per cent in March as companies reeled from the economic impact from Russia's invasion of Ukraine in February.

The level of output was still 5.8 per cent below its pre-pandemic level, Kenningham said.

Things are going to get more difficult in the second half of the year as energy prices rise and a dry summer made Germany's commercially important waterways hard to navigate- Andrew Kenningham, chief Europe economist at Capital Economics

"Things are going to get more difficult in the second half of the year" as energy prices rise and a dry summer made Germany's commercially important waterways hard to navigate, he said. Output was "likely to contract" over the second half, he said.

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