Berlin - German industrial production rose more than forecast in August, data released Tuesday showed, adds to signs of recovery in Europe's biggest economy.

Adjusted for price and seasonal changes, output jumped by 1.7 per cent month-on-month in August after slumping by a revised 1.1 per cent in July, the Ministry of Economics and Technology said.

Analysts had expected industrial production would post a rise of up to 1.5 per cent in August.

The rebound in industrial production in August followed a strong 4.2 per cent in output in the nation's building sector combined with a solid 2 per cent expansion in Germany's key industrial sector.

This helped to cancel out a 2.6 per cent drop in production in the nation's mechanical engineering industry during August.

When data for the two months of July and August are compared with May and June industrial output edged up by 0.2 per cent. (dpa)