BERLIN - A shock drop in German manufacturing output during June means the country may be heading towards a technical recession, analysts have warned.

Figures released this morning showed German industrial production slumped 1.5pc in June, plummeting past analysts’ expectations of 0.4pc.

The drop, driven by a fall in production of intermediate and capital goods, indicates that Europe’s top economy might have contracted during the second quarter — as is now widely expected.(FA)