The output for German industry soared for the month of July at its quickest rates so far this year, shown by the data from the Economy Ministry on Monday.  This means that Europes's biggest economy was powered even at the beginning of Q3 according to Reuters.

The Commerzbank economist Christoph Weil said that while the figures looked prudent at first glance, they were aided by a late start on the summer holidays.

"The crisis in emerging markets is also slowly becoming perceptible here," said Weil. "With a certain time lag that is noticeable in our economy. We will likely also be burdened in the coming months. There are dark clouds on the horizon."

More goods are produced by factories that increased to 0.7% compared to the previous month, said the ministry.  It would be the strongest increase since December but failed the Reuters consensus forecast for a 1.0% rise.

The ministry reported on Friday that figures show a drop which is larger than expected in industrial orders in July on lower foreign demand.  This drop points to some feebleness in the export engine that supported German growth in first half of this year.

Last month, business spirit rose, however, exports that drove a Q2 expansion may weaken later this year if China's slowdown hits the economy, according to Ifo economic institute said.

Investment and innovation give a key to higher competitiveness, lasting success, and a better quality of life for Germans and Europeans.  The government has set itself the goal of toughening private and public sector investment in Germany and Europe.  A new and efficient infrastructure forms the basis for challenge Germany requires a substantial amount of extra investment in its future according to Federal Ministry for Economic Affairs and Energy.

Despite the tough global economic environment, the German economy is still considered in good shape.  The country's economic growth is gaining speed again with employment at a record level and the unemployment rate is declining.  The good improvement on the labour market creates scope for sensible wage increases in real terms.