Berlin  - German industrial production posted a surprise fall in July, data released Tuesday showed, underscoring the fragile state of the recovery in Europe's biggest economy.

Adjusted for price and seasonally changes, output slumped 0.9 per cent month-on-month in July after rising by a revised 0.8 per cent in June.

Analysts had expected industrial production would post a rise of up to 2 per cent in July.

But a contraction in building sector output combined with a slump in the production of cars and mechanical engineering goods led to the overall drop in the nation's output.

However, when data for the two months of June and July are compared with May and April industrial output rose by 2.5 per cent. (dpa)