Therefore,
Germany: industrial production june lowest:
From May to June, industrial production dropped by 1.9%, after losing 0.1% in May according to clearly revised downward data by the Destatis Institute because of the automotive sector. However,
German industrial production has reached its lowest level in June since May 2020. making a decline in GDP in the third trimester probable, according to data published Thursday, the entry day of the new American customs rights for the EU.
From May to June, industrial production dropped by 1.9%, after losing 0.1% in May according to clearly revised downward data by the Destatis Institute because of the automotive sector.
Analysts surveyed by FactstSet were betting, more optimistic on a decline of 0.5%.
This spends a third month of consecutive decline for this very volatile but crucial indicator for the German manufacturing sector.
Compared to June 2024, the indicator collapsed by 3.6%.
germany: industrial production june lowest
The drop in production in June is mainly allocated to setbacks of the pharmaceutical industry (-11.0 %), mechanical construction (-5.3 %), and the food industry (-6.3 %), while energy production (+3.1 %) continues its rise.
According to the Capital Economics Cabinet. this data shows the effects of the first salvo of customs duties on Germany, and that of the day “will probably continue to curb production to a certain extent”.
“If we take industrial orders into account”, also in the red in June (-1.0%), “the third quarter could record a significant drop in German GDP,” warns Jens-Oliver Niklasch of the LBBW bank.
On the contrary, German exports nibbled 0.8% from May to June, at 115.6 billion euros according to data corrected for seasonal variations (CVS). slightly better than facts and expectations that were betting on an increase of 0.5%.
However, imports jumped 4.2%to 115.6 billion euros, more reducing the German germany: industrial production june lowest trade surplus to 14.9 billion, to the lowest since October.
Over one year, the trend is similar, imports (+7.9%) progressing three times faster than exports (+2.4%).
More worrying: exports to the United States have reached its lowest level since February 2022, with a decline of 2.1% in June marking a third month of consecutive decline.
“With current customs duties, the situation should not improve,” predicts Jens-Oliver Niklasch.
Berlin’s first trading partner has now set up 15% customs duties on European imports. a blow for German industry already in crisis because of high energy prices and decreasing international demand.
Germany: industrial production june lowest
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