German Industrial Production Falls More Than Expected

The German economy is trying to recover. Of particular concern is the data on industrial production that declined in June thus worsening already meager estimates. According to data provided by Destatis (German Statistical Office), industrial production in real terms in Germany decreased by 1.5% in June 2023. After the revision of preliminary data, production in May 2023 remained almost unchanged (-0.1%) compared to the previous month (preliminary data -0,2%). The quarterly comparison showed a 1.3% decline in production between April and June compared to the previous three months.

The performance of individual sectors of the economy varied widely, with the automotive industry particularly negative (-3.5% m/m), which grew by 5.8% in the previous month. The construction sector was also on the decline (-2.8%), while the pharmaceutical industry grew (+7.9%). Finally, the production of capital goods fell by 3.9%, while the production of consumer goods (+1.8%) and intermediate goods (+0.4%) increased.