Industrial production in Germany in May decreased by 2.5% m/m

Industrial production in Germany in May 2024 decreased by 2.5% compared to the previous month. It is reported by Reuters with reference to the data of the Federal Statistical Office of Germany.

Analysts polled by Reuters had forecast growth of 0.2%. The decline suggests that the fundamentals of Europe’s largest economy will not recover anytime soon.

«There is increasing evidence that the German economy will see a moderate recovery at best in the second half of 2024,» comments Commerzbank senior economist Ralph Solven.

The statistical office also revised the industrial production data for April to an increase of 0.1% m/m.with a decrease of 0.1% in previous calculations.

Demand remains weak. Industrial orders in Germany fell 1.6% in May from the previous month, recording a fifth straight fall.

«After an encouraging start to the year, the German economy has failed to meet high expectations and is again losing momentum without reaching full speed,» added Carsten Brzeski, global head of macroeconomic at ING.

As GMK Center reported earlier, sales of steel products by distributors in Germany in May 2024 decreased by 8.9% compared to the previous month – up to 770.91 thousand tons. Compared to May 2023, the indicator decreased by 4%. Total reserves of metal products at distributors decreased by 5% m/m and 3.7% y/y – up to 1.92 million tons.

Steel production for the month decreased by 1.9% compared to the same month in 2023 – to 3.19 million tons. Compared to the previous month, the indicator fell by 2.9%. Output of metal products for the month decreased by 3.4% y/y and 3% m/m – up to 2.65 million tons.