According to the Federal Statistical Office, production in the manufacturing industry fell by 2.4% in July compared to the previous month, after price, calendar and seasonal adjustments. According to revised data, output in June had still increased by 1.7%. Industrial production fell by 3.2%, while energy production fell by 1.9%. By contrast, the construction industry was able to increase its output slightly by +0.3 %.
Within industry, the majority of the previous month's figures are negative: significant declines in production were reported in important areas such as the manufacture of motor vehicles and motor vehicle parts (-8.1 %), mechanical engineering (-0.5 %), metal products (-3.8 %) and chemical products (-1.3 %). The only sectors to increase their output were food and animal feed production (+3.5%), printed products, sound and data carriers (+1.8%), clothing (+9.4%) and the repair and installation of machinery (+5.6%).
In the more informative three-month comparison, production in the manufacturing sector fell by 2.7 %. The decline was 2.9 % in industry and 3.4 % in construction. Only the energy sector recorded a plus of +0.9 %.
Industrial activity remains subdued at the current margin. In addition to the production data, key sentiment indicators in the manufacturing sector have also continued to worsen recently. Despite a slight upturn in July, incoming orders remain at a low level. The latest indicators for the global economy also suggest that foreign demand will remain weak in the coming months. As a result, a noticeable recovery in Germany's export-oriented industry is not expected in the short term.