Germany: Industrial production improves notably in July, marks strong start to Q3
September 5, 2014
In July, industrial production jumped a seasonally-adjusted 1.9% over the previous month, which came in well above the revised 0.4% expansion observed in June (previously reported: +0.3% month-on-month). The print marked the strongest increase since March 2012 and beat the 0.4% expansion the markets had expected. July’s notable improvement reflected strong growth in manufacturing output as well as in construction. Conversely, mining and quarrying and electricity production deteriorated over the previous month.
Compared to the same month last year, industrial production recovered the ground lost in June and swung from a 0.4% contraction to a 2.5% expansion in July. As a result, annual average growth in industrial production rose from 1.9% in June to 2.2% in July, suggesting that the trend is now pointing upward.
Author: Ricardo Aceves, Senior Economist