German industrial output was unchanged in January, as a strong rise in production in the construction sector compensated for drops in the energy and manufacturing industries, data from the Economy Ministry showed on Friday.

The output data, coming on the heels of figures showing industry orders unexpectedly falling in January, underscores signs that weakness continues in the euro zone's largest economy and paymaster, after it shrank in the last quarter of 2012.

The mid-range forecast in a Reuters poll of 40 economists had been for output to rise 0.5 percent, after an upwardly-revised 0.6 percent increase in December.

Construction output increased 3 percent on the month, while energy and manufacturing were down 2.3 and 0.2 percent respectively.

"Industrial production stabilised at the turn of the year," the economy ministry said in a statement. "Industrial production is already weighed down by the current decrease in orders, but the sentiment indicators that have been improving for months suggest an upcoming recovery."

(Reporting By Sarah Marsh)