Germany: Industrial production contracts at fastest pace in nearly two years in July
September 7, 2016
In July, industrial production shrank 1.5% over the previous month in seasonally-adjusted terms. July’s result marked a deterioration over June’s 1.1% increase and represented the lowest reading in nearly two years. Moreover, July’s result contrasted market expectations of a modest 0.2% growth. The turnaround was driven by contractions in manufacturing, mining and quarrying. Conversely, output picked up in construction as well as in the electricity and energy supply sector.
Compared to the same month last year, industrial production decreased 1.2% in July, which contrasted June’s 0.9% expansion. The overall trend continued to moderate as annual average growth in industrial production edged down from 0.7% in June to 0.5% in July.