Production in German industry declines
The production of the German industry is strongly declining. The Federal Statistical Office in Wiesbaden announced that in May, the total production fell by 2.5 percent compared to the previous month.
This is the most noticeable setback since the end of 2022. Analysts had on average calculated a slight increase of 0.1 percent. Compared to the previous year, production dropped by 6.7 percent. The weak production data follow disappointing order numbers from the previous day.
"The significant minus in industrial production once again makes it clear that a quick and substantial economic recovery is not in sight everywhere," said Commerzbank Chief Economist Jörg Kraemer. After a stagnation of economic output in the second quarter, only a bloodless upward movement can be expected.
In the production sector of the industry, this negative trend was evident in May. Despite predictions for a minor increase, May's production actually decreased by 2.5% in the industry.
