Data published by the Federal Statistical Office (Destatis) showed that industrial production decreased by 2.5% in May after rising by 0.1% in April (revised from -0.1%). This was the sharpest drop since December 2022. Economists had expected a 0.2% increase. In annual terms, industrial production fell by 6.7%, accelerating compared to April (-3.7%). Meanwhile, over the last three months (through May), industrial production remained unchanged compared to the previous three-month period.
Destatis said that downwards trends were seen in most economic sectors of industry in May. Production in the automotive industry fell by 5.2% m/m, while production in the “manufacture of machinery and equipment” sector decreased by 5.9% m/m. The production of capital goods declined by 4.0%, the production of intermediate goods decreased by 2.7% and the production of consumer goods was down 0.2%. Meanwhile, energy production grew by 2.6% m/m. Production in construction dropped by 3.3% from the previous month. Industrial production, excluding energy and construction, fell by 2.9% m/m and by 7.3% per annum. Production in energy-intensive industries increased by 0.2% compared to April and by 2.5% per annum.