Germany: Industrial production falls to lowest level in over two years
July 7, 2014
In May, industrial output contracted a seasonally-adjusted 1.8% over the previous month and came in below the revised 0.3% fall registered in April (previously reported: +0.2% month-on-month). The print, which contrasted the 0.2% expansion the markets had expected, marked the third consecutive fall and represented the sharpest decrease since April 2012. May’s reading was the result of a broad-based deterioration, particularly in construction. Electricity production was the only sub-category that registered an improvement in May.
Compared to the same month last year, industrial production expanded 1.3% in May, which mirrored the growth rate registered in April (previously reported: +1.8% year-on-year). Nonetheless, the trend continued to point upward. Annual average growth in industrial production rose from 1.8% in April to 2.0% in May.
Author: Ricardo Aceves, Senior Economist