German industrial production in June hits lowest level since May 2020

ISTANBUL

Industrial output in Germany dropped 1.9% on a monthly basis in June, reaching lowest level since May 2020, according to the country’s statistical authority data released on Thursday.

The decline accelerated from the May's downwardly revised 0.1% monthly drop, data from Destatis showed, while the market forecast was a 0.4% fall for June's figure.

The downturn was mainly led by a major drop in the manufacture of machinery and equipment, which fell 5.3% month-on-month.

The pharmaceutical industry and the food industry also saw major falls in June, falling 11% and 6.3%, respectively.

"By contrast, the growth recorded in energy production (+3.1%) had a positive effect," Destatis said

In June, production in industry excluding energy and construction was down 2.8% on a monthly basis.

"Within industry, decreases were reported in all three major groups. The production of consumer goods fell by 5.6%, capital goods production by 3.2% and intermediate goods production by 0.6%. Outside industry, production in construction increased by 0.7%," it noted.

Compared with June 2024, production in industry excluding energy and construction was down 4.7% in June.

On an annual basis, Germany's industrial output declined 3.6% in June.