Germany: Industrial production contracts in May
July 7, 2016
In May, industrial production dropped 1.3% from the previous month in seasonally-adjusted terms. May’s result marked a dramatic downward shift after April’s 0.5 % increase and represented the lowest reading in almost two years. Moreover, May’s result greatly undershot market expectations of zero growth. The deterioration was driven entirely by worsening conditions in the manufacturing sector. All other sectors either grew at a faster pace or saw their rate of contraction soften.
Compared to the same month last year, industrial production decreased 0.4% in May, which came in below April’s 0.8% rise. The overall trend also worsened as annual average growth in industrial production inched down from 0.9% in April to 0.8% in May.
Author: Christopher Mc Innes, Economist