Germany: Industrial output falls more than expected in June
August 5, 2011
In June, industrial production fell a seasonally and working-day adjusted 1.1% over the previous month, which reversed the revised 0.9% increase observed in May (previously reported: +1.2% month-on-month) and fell short of market expectations that had anticipated industrial output would remain flat. On a yearly basis, industrial output grew 6.7% in June, slower than the 7.2% expansion tallied in May. The June fall mainly reflected a sharp contraction in construction activity (May: -0.2% mom; June: -4.5% mom). In addition, manufacturing fell 1.0% over the previous month, contrasting a 1.5% increase in May. As a result of the monthly deterioration, the trend suggests that the industrial sector has passed its growth peak in March, with annual average growth in industrial output edging down from 10.9% in May to 10.6% in June.
Author: Ricardo Aceves, Senior Economist