In August, German industrial production declined for the second month in three, suggesting the recovery from last year's economic contraction is slowing, according to the German government. Output by factories, utilities, construction sites and mines fell by 1 percent from July, the Economics and Labor Ministry in Berlin reported. According to a survey by Bloomberg, economists had expected a decline of 0.4 percent. Blamed for the slowdown is this year's 62 percent rise in oil prices, stubborn unemployment rates and declining demand for exports, a key engine driving Germany's economy. As Europe's largest economy, its performance has an effect on the entire euro zone and the president of the European Central Bank, Jean-Claude Trichet, said prospects for growth in the whole euro region are faced with "a good deal of uncertainty" due to high energy costs and depressed consumer spending.