Germany: Industrial output rebounds in June and expands at fastest pace in nearly two years
August 7, 2013
In June, industrial output grew 2.4% over the previous month in seasonally adjusted terms, which represents the fastest pace of expansion since July 2011. The reading contrasts the revised 0.8% decline observed in May (previously reported: -1.0% month-on-month) and significantly overshot market expectations of a 0.3% increase.
The rebound in industrial production reflected strong improvements across the board. Manufacturing output also increased at its fastest pace in nearly two years. In addition, construction, electricity production as well as mining and quarrying gained some of the ground lost in May.
Compared to the same month last year, industrial production expanded 2.0% in June, which contrasts the 1.2% contraction observed in May. The trend improved slightly, with the annual average variation in factory output rising from minus 1.3% in May to minus 1.2% in June.
Panellists polled by FocusEconomics expect that industrial production will contract 0.3% this year, which is down 0.6 percentage points from last month's forecast. For 2014, the panel sees industrial production rebounding to a 2.4% expansion.
Author: Ricardo Aceves, Senior Economist