Industrial production in Germany surged the most in more than a year in July as late school holidays boosted factory output. Production jumped 4 percent from June, when it dropped 1 percent, the Economy Ministry in Berlin said today. That’s the biggest gain since March 2010. The German economy, Europe’s largest, will expand "in the region of 3 percent" this year, German Federal Bank, Bundesbank reiterated last month after growth slowed to a near standstill in the second quarter. While unemployment fell for a 26th month in August, confidence among consumers, investors and businesses worsened as the region’s debt crisis threatened to derail the recovery.