Germany’s industrial production declined unexpectedly in May suggesting that the economy is losing steam, official data revealed on Friday.

Industrial production posted a monthly decline of 2.5 percent in May, reversing a revised 0.1 percent rise in April, Destatis reported. Output was expected to grow 0.2 percent.

The decline was largely driven by substantial decreases in the automotive industry. The decline in automotive industry was 5.2 percent and the fall in the manufacture of machinery and equipment sector was 5.9 percent.

On a yearly basis, industrial output declined sharply by 6.7 percent, after a 3.7 percent fall seen in April.

Excluding energy and construction, industrial production was down 2.9 percent from April and declined 7.3 percent from the previous year.

Energy production advanced 2.6 percent, while construction output dropped 3.3 percent.

Production of capital goods declined 4.0 percent and that of intermediate goods was down 2.7 percent. Output of consumer goods dropped only 0.2 percent.

Data released on July 4 showed that due to the fall in foreign demand, factory orders declined 1.6 percent month-on-month in May, sharper than the revised 0.6 percent decrease in April.

ING economist Carsten Brzeski said after an encouraging start to the year, the German economy has not been able to meet the high expectations and is losing steam again far before reaching full speed.