Germany: Industrial production rebounds in July
September 7, 2012
In July, industrial production climbed 1.3% over the previous month in seasonally adjusted terms. The reading contrasted the revised 0.4% decline recorded in June (previously reported: -0.9% month-on-month) and surprised the market on the upside, which had seen industrial output remaining flat. Strong growth in manufacturing production as well as in construction were the main drivers behind the monthly jump. Compared to the same month a year ago, industrial production - adjusted for working days - declined 1.4% in July, which contrasted the 0.3% increase recorded in June. As a result, the trend remains on a downward trajectory, with annual average growth falling from 2.9% in June to 2.0% in July, the slowest pace seen in two years. The Bundesbank expects the economy to expand 1.0% this year, before picking up to 1.6% in 2013.
Author: Ricardo Aceves, Senior Economist