By Germany’s industrial production experienced a larger than anticipated decline in June, indicating weak demand and raising concerns about an impending slowdown in the eurozone economy.
Output falls by 1.5% in June
In June, output saw a decrease of 1.5% compared to the previous month on a seasonally and calendar-adjusted basis, falling short of economists’ forecasts of a 0.5% decline. These figures were revealed by the German statistics office, Destatis, on Monday.
Manufacturing orders rose unexpectedly in June
While manufacturing orders saw an unexpected increase in June, economists are skeptical about the sustainability of this growth in the future. They have issued warnings that the eurozone is likely to enter a shallow recession as its major economies face challenges.
Construction output and manufacturing suffer declines
Destatis reported that Germany’s construction output notably weakened in June, with a decline of 2.8% compared to the previous month. Manufacturing, excluding energy and construction, also experienced a fall of 1.3%. Among various sectors, the automotive industry was particularly negatively affected, while the pharmaceutical sector rebounded after a previous slump.
Second-quarter industrial output drops 1.3%
The data from Destatis also showed that industrial output for the entire second quarter fell by 1.3% compared to the previous three-month period.
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