Germany: Industrial output falls in June
Industrial production fell 1.3% month-on-month in June, following May’s 0.8% contraction. The print reflected declining output of capital and intermediate goods as well as a contraction in energy production and construction activity. This more than offset a pick up in consumer goods output.
On an annual basis, industrial production rose 5.1% in June (May: +16.6% yoy). The print continued to benefit from a favorable base effect, however. Annual average industrial production swung from a 0.2% contraction in May to a 1.1% expansion in June.
June marked the third consecutive month in which industrial production contracted on a sequential basis. Commenting on the outlook for the German industrial sector, Carsten Brzeski, global head of macro at ING, added:
“Supply chain frictions still seem to be clogging industrial activity. Once the supply chain frictions start to dissipate (…) industrial production growth will flood out.”