German industrial production stumbles | 2018-09-09 |

German industrial production stumbles

9 September, 2018 12:00 AM printer

FRANKFURT AM MAIN: Industrial production in Germany slipped in July, official data showed Friday, following up a weak new orders figure the day before.

Output fell 1.1 percent month-on-month, federal statistics authority Destatis said in figures adjusted for price, seasonal and calendar effects, reports AFP.

That disappointed forecasts from analysts surveyed by Factset, who had reckoned with a 0.2 percent increase.

Production was lower across manufacturing firms, with capital goods makers shedding 2.5 percent, producer goods makers 1.4 percent and consumer goods 0.9 percent.

Construction output was the only sector to report an increase, while energy firms generated the same amount as last month.

Economic growth in Germany has slowed from the high pace seen in late 2017, as trade war fears have weighed on confidence in the export-reliant country.

Think-tank DIW predicted Thursday annual growth of 1.8 percent, saying “the German economy is pressing slightly on the brake pedal” following last year’s 2.2-percent expansion.

In a separate release, Destatis said Germany’s trade balance — total exports minus total imports — stood at 16.5 billion euros ($19.2 billion), down from 18.8 billion one year ago.