Data published by the Federal Statistical Office (Destatis) showed that industrial production fell by 2.4% in July, offsetting the June increase (+1.7%, revised from +1.4%). Economists had expected a 0.3% decrease. In annual terms, industrial production fell by 5.3%, accelerating compared to June (-3.7%). Meanwhile, over the last three months (through July), industrial production fell by 2.7% compared to the previous three-month period.
Destatis said that the production declined in most sectors of manufacturing in July, with the largest decline recorded in the automotive industry (-8.1% m/m, following a 7.9% increase in June). Production also fell in the “manufacture of electrical equipment” (-7.0% m/m) and “manufacture of fabricated metal products” sectors (-3.8% m/m).
The production of capital goods declined by 4.2%, the production of intermediate goods declined by 2.8% and the production of consumer goods was down 1.2%. Meanwhile, energy production fell by 1.9% m/m. Production in construction increased by 0.3% compared to the previous month. Production in industry excluding energy and construction fell by 3.2% m/m and 6.1% per annum. Production in energy-intensive industries fell by 1.4% compared to June and increased by 3.0% per annum.