Industrial production increased slightly in June
The positive development of production in the manufacturing sector in June is mainly due to a 7.5 percent increase in the automotive industry, as the statistics office reported. Here, production had decreased by 9.9 percent in May. The production of electrical equipment also increased significantly by 5.2 percent. In contrast, production in the food industry decreased by 5.3 percent.
In energy-intensive industries, production grew by 1.4 percent in June and also increased in the three-month comparison: it was 1.3 percent higher in the second quarter than in the first quarter.
The Federal Ministry of Economics explained: "Even though production data has improved recently, the subdued business expectations in the manufacturing sector indicate a continued subdued industrial economy." A broad economic recovery is therefore not to be expected at present, also given the still low order inflows from abroad.
Orders for German industrial companies increased in June for the first time in six months, according to figures released on Tuesday. Domestic orders increased significantly by around nine percent, while foreign orders increased by only 0.4 percent.
The improvement in production data in some sectors does not necessarily indicate a broad economic recovery, as other sectors, like the food industry, continue to struggle with decreases. Furthermore, while orders for German industrial companies have picked up slightly, the subdued growth in foreign orders suggests that 'Other' international factors may still be hindering a full economic recovery.
