Germany – Production disappoints despite increase

The 1.4% rise in German industrial production compensated only for half of the setback in May.

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Dr Vincent Stamer

Commerzbank Economic Research

08/07/2024

Together with other leading indicators, this points to a weak start to the second half of the year. We expect an anemic recovery at best.

In June, industrial production increased 1.4% in June on a seasonally adjusted basis, which was roughly in line with expectations. Production in the narrower sense (excluding the construction industry and energy) rose similarly by 1.5%. Production increased across the board; important areas such as the automotive sector and electronic equipment recorded strong growth. Production in the energy-intensive industry also increased by 1.4%.

However, the increase in industrial production was only able to compensate for half of the sharp setback in May, especially as the figure for May was revised downwards further (from -2.5% to -3.1%).

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