Germany: Industrial output rises in July
September 6, 2021
Industrial production rose 1.0% month-on-month in July in seasonally- and calendar-adjusted terms, swinging from June’s 1.0% contraction. The print was driven by a return to growth in capital goods production and in the construction sector. On the other hand, the drop in energy production worsened, while production of intermediate goods fell at a softer rate.
On an annual basis, industrial production expanded 5.7% in July (June: +5.4% yoy). Annual average industrial production rose from 1.2% in June to 2.4% in July.
Carsten Brzeski, global head of macro at ING, added:
“After a disappointing second quarter, industrial production has finally offered some long-expected signs of life. […] Supply chain frictions such as the blockage in the Suez Canal and semiconductor delivery problems affected key sectors of German industry and more than offset the positive impact from lifted restrictions. Supply chain frictions have not disappeared but at least in July, the pipeline pressure from filled order books and low inventories was simply too strong not to see industrial production surging.”