Industrial production in Europe’s largest economy was flat in July, official data showed Thursday, in a sign that Germany’s industry is starting to lose vigor.
Industrial output was unchanged compared with June, as a sharp drop in energy production outweighed small gains in manufacturing and construction, according to Germany’s Federal Statistical Office.
Economists polled by The Wall Street Journal had forecast a 0.5% rise. The monthly data factors out seasonal swings and calendar effects.
German industrial activity picked up speed between January and May, but has lost some momentum around the turn of the year. Pointing to companies’ order books, the German ministry of economics said “the rate of expansion is likely to turn out slower than in the first half of the year.”
Official data published Wednesday showed that German manufacturing orders dropped 0.7% in July compared with June. However, total industrial output was still up 4% from July last year.
Source: Dow Jones