Germany economy on edge: Shock PLUNGE in industrial output is biggest fall in six months

Monday, August 7, 2017
By Paul Martin

GERMANY’s industrial output sank in June sparking fears for the eurozone’s largest economy, which is heavily dependent on manufacturing.

Mon, Aug 7, 2017

Factory and construction firms output fell by a an economically damaging 1.1 per cent, the biggest fall in six months, according to the latest data from the German Economy Ministry.

Manufacturers of intermediate, capital and consumer goods all churned out less than in May, while energy productions increased, the figures showed.

In a statement the ministry attempted to shrug off the dismal data.

It said: “Factory orders as well as indicators for business climate point to the upward trend in industrial production continuing.”

Expansion increased overall in the second quarter, but the monthly fall is the latest worrying indicator for Germany’s economy.

Manufacturing Output Index from IHS Markit fell to a six-month low in June.

And service output in the country also hit its lowest level in half a year, showed the figures.

IHS Markit said: “The overall rate of expansion was the weakest since January, a trend reflected in both manufacturing output and services business activity.

“Similarly, new business inflows increased at the softest rate since the start of 2017.”

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