Germany’s industrial production falls sharply in July

Germany’s industrial production declined sharply in sequential basis in July on a price, seasonally and working day adjusted basis, stated Germany’s official statistics office, Destatis. The decline was mainly due to a sharp fall in manufacturing output. The industrial output in the month fell 1.5 percent, as compared with consensus expectations of 0.2 percent. The corrected figure of June 2016 indicates that industrial production rose 1.1 percent month-on-month, as compared with the primary reading of a 0.8 percent rise.

Stripping construction and energy, industrial production declined 2.3 percent in July. Production of capital goods in industry dropped 3.6 percent, while the production of consumer goods fell 2.6 percent. Meanwhile, the production of intermediate goods dropped 0.8 percent. According to Destatis, energy production increased 2.6 percent in July, while that of construction grew 1.8 percent in the month. On a year-on-year basis, industrial output declined 1.2 percent.