Germany: Industrial output posts quickest growth in over one year in June
Industrial output bounced back and rose 1.4% in seasonally adjusted month-on-month terms in June, which contrasted May’s 3.1% decrease. June’s print marked the best reading since February 2023 and beat market expectations of a 1.0% expansion. June’s notable pickup was broad based, with manufacturing, mining and quarrying, and construction activity all rebounding. Moreover, energy output rose at a faster pace.
On an annual basis, industrial production fell at a softer pace of 4.1% in June (May: -7.2% yoy). Meanwhile, the trend pointed down, with the annual average variation of industrial production coming in at minus 4.3% in June, down from May’s minus 4.1% reading.
ING’s Carsten Brzeski commented:
“Despite a weak start to the second half of the year, don’t rule out potential positive surprises. Yesterday’s increase in new industrial orders as well as today’s industrial production data suggest that some rebound is still possible. In fact, inventories have never been at such high levels for such a long time before, still keeping the prospect of a turn in the inventory cycle alive.”