German industrial production increased in July, but fell short of analysts' expectations, the economy ministry said on Monday.

The ministry calculated that factory output rose by 0.7 percent in July compared with a month earlier, corrected for seasonal factors.

Analysts polled by financial services firm FactSet had pencilled in a bigger increase of 1.1 percent following a contraction of 0.9 percent in June.

Manufacturing output increased by 0.3 percent month-on-month, but energy output rose by 1.9 percent and construction output was up by 3.2 percent.

Data published on Friday showed that German industrial orders, a key measure of demand for goods in Europe's top economy, fell by 1.4 percent in July, weighed down by declining demand outside the euro area.