A German manufacturing industry output rose by 1.5% year-on-year in July, adjusted for calendar effects, and by 1.3% compared to the previous month, excluding seasonal and calendar influences, it was announced today.
Data released by the German Federal Statistical Office (Destatis) indicated that, on a less volatile quarterly comparison, production from May to July was 0.1% lower than the previous three months.
In June, production fell by 0.1% compared to May, according to the revised preliminary data, which initially indicated a decline of 1.9%, while year-on-year it decreased by 1.8% instead of 3.6%.
The extent of the revision is attributed to corrections reported by an automotive company and the incorporation of additional data.
The positive development in July was mainly due to a 9.5% increase in mechanical engineering compared to the previous month.
The rise in the automotive industry by 2.3% and in pharmaceuticals by 8.4% also positively influenced the overall result, while a 4.5% drop in energy production had a negative impact.
In the industrial sector – excluding energy and construction – production grew by 2.3% year-on-year in July and by 2.2% compared to June.
The production of capital goods increased by 3.0% over the previous month, consumer goods by 2.1%, and intermediate goods by 0.8%. Meanwhile, construction grew by 0.3%.
Production in energy-intensive sectors increased by 0.4% compared to June and contracted by 4.8% year-on-year.
On a quarterly comparison, production in energy-intensive sectors from May to July was 2.6% lower than the previous three months.
The current data generally indicate a somewhat more favorable industrial situation at present and point to a slow stabilization of industrial production, driven by key sectors such as mechanical engineering and the automotive industry, according to the German Economy Ministry.
Despite the generally restrained climate, the upward trend in business expectations points to a stabilization of the industrial situation over the year, the statement adds.
Nevertheless, uncertainty remains high due to geopolitical conditions and the evolution of domestic and foreign demand, it concludes.
