Germany: Industrial production in June recovers part of ground lost in May
August 7, 2014
In June, industrial production expanded a seasonally-adjusted 0.3% over the previous month and contrasted the revised 1.7% contraction observed in May (previously reported: -1.8% month-on-month). The print marked the first increase after three consecutive months of decline, but came in well below the 1.2% expansion the markets had expected. June’s result reflected improvements in manufacturing output and electricity production, as well as in construction.
In year-on-year terms, industrial production swung from a 1.1% increase in May to a 0.5% decrease in June, which represents the first annual contraction since July 2013. As a result, the annual average variation in industrial production inched down from 2.0% in May to 1.9% in June, suggesting that the trend is now pointing downward.
Author: Ricardo Aceves, Senior Economist