The figures underlined the resilience of Germany’s recovery. As output picks up, the economy minister advocated bigger pay rises — pointing to a recent deal in which steel workers secured a 3.6 percent wage hike.

Industrial production grew by 1.7 percent on the month in August, the Economy Ministry said. That increase beat economists’ forecast of 0.5 percent, and followed barely perceptible growth of 0.1 percent in July.

It was led by a 2.6 percent increase in production of so-called investment goods such as machinery. Consumer goods production rose 0.6 percent while construction output declined 0.4 percent.

Strong export growth helped Germany to quarter-on-quarter economic growth of 2.2 percent in the second quarter. While that pace is expected to slow, growth is expected to remain healthy.

On Wednesday, official data showed that industrial orders rose strongly in August following a decline in July, fueled by a jump in orders from abroad — including a surge in demand from elsewhere in the euro zone.

Two disappointing months of industrial data had raised concerns about foreign demand and the sustainability of Germany’s recovery, said Carsten Brzeski, an economist at ING in Brussels.

“Today’s numbers should hush these concerns — not only once, but for a longer period,” he said. “Looking ahead, all available evidence points to a further strengthening of the German industry.” The latest figures “brought important evidence that a substantial part of the second-quarter momentum has been carried over into the second half of the year,” Brzeski had.

The government is due to update its forecast for 2010 economic growth later this month. Its current official forecast is for a 1.4 percent increase — a prediction that has long since been overtaken by events. Germany’s central bank, the Bundesbank, has forecast growth of about 3 percent.

The new government forecast will be for “at least a 2 with a high number after the point,” Economy Minister Rainer Bruederle was quoted as telling the daily Hamburger Abendblatt.

This year’s return to healthy growth has reinforced demands for higher wage rises after years of restraint.

Consumer confidence has been driven higher by optimism about jobs and personal income — raising hopes of stronger domestic demand.

“When the economy is booming, robust wage rises are possible,” Bruederle said.

Last week, steel workers last week secured a 3.6 percent pay increase — up from 2 percent last year.

“The deal in the steel industry showed that a fair compromise is possible toward which other sectors perhaps could orient themselves,” Bruederle was quoted as saying.

“The crisis is over — now it is time to set new priorities,” he added. “We must keep jobs in Germany attractive in order to grasp our growth opportunities.”