German industrial output drops unexpectedly in June
FRANKFURT AM MAIN: German industrial production declined in June, disappointing analysts’ expectations, official data showed yesterday.
Production fell by 1.1 percent monthon-month in June, after a 1.2-percent rise in May, according to figures adjusted for price, seasonal and calendar effects from federal statistics authority Destatis.
The June figure fell short of the 0.25 percent growth predicted by analysts surveyed by Factset.
Industrial production is closely watched as an indicator of the health of an economy, and has been on the rise in Germany in recent months along with indicators of business, investor and consumer confidence. Looking at the different industrial sectors, capital goods makers’ output fell 1.9 percent, while producer goods production was down 1.2 percent and consumer goods production declined by 0.7 percent. Construction output fell 1.0 percent, while the energy sector was the only ones to report increased production, 1.4 percent higher than in May.
Despite the fall in June, “the business situation in industry continued to revive in the second quarter,” the economy ministry in Berlin said in a statement, noting that production only sank in June after five consecutive months of increases.
“Industrial orders and indicators for the business climate suggest that the upward trend in industrial production will continue,” the ministry added. —AFP