Industrial production in Germany fell by 2.4% m/m in July

This indicator decreased by 5.3% y/y

In July, industrial production in Germany decreased by 2.4% compared to the previous month. This was reported by the Federal Statistical Office (Destatis).

On an annualized basis, this figure fell by 5.3%.

In July 2024, production declined in most sectors of the manufacturing sector. The overall result in this period was significantly affected, in particular, by a decline in the automotive industry (-8.1% m/m) after June’s growth (+7.9% m/m), the production of electrical equipment (-7% m/m), and metal products (-3.8% m/m).

In July, production of capital goods decreased by 4.2%, intermediate goods by 2.8%, and consumer goods by 2.1%. Electricity production in the country fell by 1.9% m/m, while construction volumes increased by 0.3% compared to June.

In energy-intensive industries, production in July 2024 fell by 1.8% compared to June, but increased by 3% year-on-year.

According to the revised data, in June, industrial production in Germany grew by 1.7% (previously reported growth of 1.4% compared to May).

As GMK Center reported earlier, the Kiel Institute for the World Economy (IfW) forecasts a 0.1% decline in Germany’s GDP this year. In its summer forecast, the IfW expected the country’s economy to grow by 0.2% in 2024. Economists also lowered their GDP growth forecasts for 2025 to 0.5% from the previous 1.1%. Thus, the recession may be observed for the second year in a row. In 2023, the German economy shrank by 0.3%.