The German Federal Statistical Office (Destatis) released preliminary data today indicating that, on a less volatile quarterly comparison, production from June to August was 1.3% lower than in the previous three months.
For July, Destatis confirmed preliminary figures showing production rose 1.5% year-on-year and 1.3% compared to June.
The downturn in August can be attributed primarily to a significant 18.5% decrease from the previous month in Germany’s most crucial industrial sector, automotive manufacturing.
This decline was due, in part, to factory shutdowns for vacations, which, contrary to usual patterns, were mainly concentrated in August this year, along with adjustments in production.
Also negatively impacting the overall result was a 6.2% drop in mechanical engineering production, following a 9.2% growth in July.
The pharmaceutical industry saw a production decline of 10.3%, and a 6.1% reduction occurred in the manufacturing of data processing equipment and electronic and optical products, further affecting the figures.
Other economic sectors had minimal influence on the overall result.
In the industrial sector, excluding energy and construction, production fell by 5.6% in August compared to July and 5.1% year-on-year.
The production of capital goods decreased by 9.6%, consumer goods by 4.7%, and intermediate goods by 0.2%.
Energy generation saw a decrease of 0.5%, while construction increased by 0.6%.
In energy-intensive sectors, production rose by 0.2% compared to July but contracted by 4.0% year-on-year.
For the remainder of the year, current indicators present a mixed picture, reflecting ongoing geopolitical and trade uncertainties, according to the Ministry of Economy.
Although domestic orders increased significantly in August, weak external demand is hindering business performance.
In general, leading indicators suggest that economic activity remains sluggish in the third quarter, the statement adds.
