Dhe industry in Germany continues to develop weakly. In July, total production fell by 0.8 percent compared to the previous month, as the Federal Statistical Office announced on Thursday in Wiesbaden. On average, analysts had expected a drop of just 0.4 percent.
The latest decline follows a setback of 1.4 percent in June, which, according to new data, is somewhat more moderate than initially calculated. In a less fluctuating three-month comparison, production fell by 1.9 percent up to July. Compared to the same month last year, total production in July fell by 2.1 percent.
In detail, the development is even weaker than at first glance. Because only the energy sector and the construction industry provided relief in July. The manufacture of goods in industry, on the other hand, declined by 1.8 percent. Capital goods such as machines were manufactured 2.9 percent less. The production of consumer goods fell by 1.0 percent, the production of intermediate goods fell by 0.7 percent.
variety of loads
“Obviously, the weak demand is increasingly affecting production,” commented Commerzbank economist Ralph Solveen. Order figures from the previous day had shown a sharp decline in July, which was also due to a special effect. However, orders are also trending downwards.
“In the coming months, the downward trend in industry is likely to continue and contribute to the German economy shrinking in the second half of the year,” predicts economist Solveen. Economic output had already been declining in the winter months. In the spring quarter it was only enough to stagnate. The International Monetary Fund (IMF) assesses the economic prospects for Germany this year as the most unfavorable compared to other major economies.
The German economy has been suffering from a variety of burdens for a long time, including the weak global economy. Germany’s economic structure is strongly geared towards the export of goods, which is why demand from abroad plays a decisive role for the industry. Energy-intensive production also remains a burden, as chief economist Thomas Gitzel from VP Bank emphasizes. The background is the still high prices for energy and raw materials.
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