Germany: Industrial production falls the most in over three years in August
Latest reading: Industrial production declined 4.3% on a calendar-adjusted month-on-month basis in August, following 1.3% growth in the prior month, and marking the steepest decline since March 2022.
Relative to the prior month’s figures, readings in August worsened for industrial production (-5.5% mom s.a. vs +1.7% in July) and mining and quarrying output (-1.2% vs +4.9% in July). In contrast, readings picked up for energy (-0.5% vs -1.5% in July) and construction output (+0.6% vs +0.1% in July).
On a calendar-adjusted month-on-month basis, industrial production declined 3.9% in August, following a 1.5% increase in the previous month.
Panelist insight: Commenting on the outlook, ING’s Carsten Brzeski stated:
“Even if the spring revival of German industry reminded us of the Emperor’s new clothes, hope remains that the fiscal stimulus, and particularly defence spending, could still feed through to industry over the coming months. If not, the long to-do list of the German government will get even longer, with the next item being the need for traditional short-term stimulus – or at least a stabilisation package.”