A industrial production and Germany It fell in June to its lowest level since the 2020 pandemic, expanding last year’s falls amid the weakening of external demand and increased competition from China, while exports increased more than expected, showed data on Thursday (7).
Industrial production fell 1.9% in June over the previous month, said the Federal Office of Statistics, against expectation in Reuters survey with 0.5% retreat analysts.
Production has reached its lowest point since May 2020, when the pandemic triggered a strong contraction, the office added.
A three -month comparison showed a 1% decline in production in the second quarter, marking a return to levels last seen in the first half of 2020.
Previously, it seemed that German industrial production was recovering this year after a sharp drop in 2024, but new data show that the downward trend continued by 2025, Franziska Palmas, a senior economist to Europe in the capital Economics, said.
“Medium -term prospects for German industry remain bad, as weak growth in both Europe and China and the growing competition of Chinese producers will likely weigh on the demand for German industrial products,” Palmas added.
The statistics office also revised May data to a 0.1% drop compared to the previous month, compared to an increase of 1.2% informed before.
The office attributed the revision to the corrections of automotive establishments.
Production fell 1% in the second quarter compared to the previous quarter, which means that the sector subtracted about 0.3% of GDP in the last quarter, Palmas said.
