Industrial production in Germany increased by 1.4% m/m in June

In June 2024, industrial production in Germany increased by 1.4% compared to the previous month. This is evidenced by the data of the Federal Statistical Office of the country (Destatis).

Compared to June 2023, this indicator decreased by 4.1%.

The recovery of industrial production in Germany is due, in particular, to growth in the automotive industry. It amounted to 7.5% m/m after the May decline (-9.9%). Growth in the production of electrical equipment (+5.2%) also had a positive impact. However, the overall result was negatively affected by the decline in the food industry (-5.3%).

In June 2024, production in energy-intensive industries increased by 1.4% m/m and 3.8% y/y. In the second quarter, this indicator increased by 1.3% q/q.

The volume of construction in June of the current year increased by 0.3% compared to May, electricity production – by 2.9% m/m.

At the same time, according to revised data, industrial production in Germany fell by 3.1% m/m in May 2024, instead of by 2.5%, as previously reported.

As GMK Center reported earlier, in July the German government adopted the draft budget for 2025 along with a package of measures called the «Growth Initiative» (Wachstumsinitiative). In total, 49 measures were agreed to under the initiative, including tax incentives for private investment and attracting skilled foreign workers, cutting red tape, plans to create backup capacity for renewable energy, and easing the burden of high electricity prices for energy-intensive companies.