Germany’s Industrial Output Drops Unexpectedly in July Led by Auto Sector
Unexpected Decline in German Industrial Production
By Maria Martinez
July Production Figures and Analyst Expectations
Sept 7 (Reuters) – German industrial production fell unexpectedly in July, primarily due to a significant drop in the automotive sector. The federal statistics office reported a 1.1% decrease compared to the previous month, contrary to analysts’ predictions of a 0.1% increase.
Automotive Sector’s Impact
The sharp decline was largely attributed to a 9.2% reduction in automotive production, as noted by the German Automotive Association (VDA), citing a multi-week shutdown in production.
Broader Industrial Trends
In a less volatile comparison, industrial production over the three-month span from May to July was 0.4% higher than in the preceding three months. However, year-on-year figures show a 1.6% decrease after adjustments for calendar effects.
Revised Data and Orders
After revisions, June’s production was confirmed to have remained steady at the previous month’s level instead of rising by 0.2%. In contrast, industrial orders in July saw an increase of 2.5% compared to the previous month, as per the national statistics office.
Reporting Credits
(Reporting by Tristan Veyet in Gdansk and Maria Martinez in Berlin; Editing by Linda Pasquini)
