Ger­man in­dus­trial out­put drops un­ex­pect­edly in June

Kuwait Times - - BUSINESS -

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

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