Germany: Industrial production drops in July
On a seasonally-adjusted monthly basis, industrial production dropped 0.3% in July (June: +0.8% mom). The contraction was fairly broad-based with output in intermediate, consumer and capital goods decreasing. On the other hand, energy production and construction sector activity rebounded.
Industrial output fell 1.1% year on year in working-day adjusted terms in July (June: -0.1% yoy). Meanwhile, the trend pointed down, with annual average industrial production contracting 0.9% in July (June: -0.4%).
Carsten Brzeski, global head of macro at ING, added:
“Looking ahead, shrinking order books since the start of the Ukraine war, the well-known supply chain problems (both international and domestic) plus high uncertainty, high energy and commodity prices and potential energy supply disruptions will not make life any easier. Judging from the first macro data for the third quarter, the German economy has not fallen off a cliff at the start of the third quarter but is rather sliding into recession.”