Germany industrial output grew unexpectedly in June underpinned by higher production of capital and consumer goods, data released by Destatis revealed on Friday.
Industrial production grew 0.4 percent from May, revering a drop of 0.1 percent. Output was forecast to fall 0.3 percent.
Excluding energy and construction, industrial output was up 0.7 percent. Energy production remained flat, while construction output dropped 0.8 percent in June.
Within industry, capital goods output grew 1.0 percent and consumer goods production climbed 1.1 percent. Production of intermediate goods gained only 0.3 percent.
On a yearly basis, the decline in industrial output slowed to 0.5 percent from 1.7 percent.
Despite high energy prices and disrupted supply chains, the industry is showing its resilience, the economy ministry said.
In the face of reduced gas supplies from Russia and the continuing high level of uncertainty, the prospects for the second half of the year remain subdued, the ministry noted.
Data released on Thursday showed that factory orders dropped 0.4 percent on month in June, after a revised 0.2 percent fall in May.
The small increase in German industrial production in June was not enough to reverse declines earlier in the year and left output well below pre-pandemic levels, Andrew Kenningham, an economist at Capital Economics, said.
Things are going to get more difficult in the second half of the year due to the energy crisis, rising borrowing costs and falling demand, the economist added.
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