Germany: German industrial sector rebounds slightly in May
July 8, 2019
Industrial output expanded a meager 0.3% month-on-month in May in seasonally- and calendar-adjusted terms, contrasting the revised 2.0% drop in output in April (previously reported: -1.9% month-on-month). The small expansion was driven by output growth in manufacturing, and capital and consumer goods offsetting drops in intermediate goods, energy and construction output.
Compared to the same month a year earlier, industrial production fell 3.7% in May. This marked a steeper contraction than the revised 2.3% drop in April (previously reported: -1.8% year-on-year). Lastly, annual average industrial output decreased 1.0% in May, down from a 0.5% fall in April.
Carsten Brzeski, chief economist at ING Germany, pointed out that “it could have been worse and the increase in production in the manufacturing industry, in particular, indicates that it’s not all shock-and-awe in German industry. […] At the same time, however, the sharp increases in inventories in almost all sectors of industry brings back memories of last year and does not bode well for the second half of the year.”
Author: Jan Lammersen, Economist