Uptick in manufacturing also comes despite high energy prices and war in the Middle East
Germany’s industrial production rose slightly in June, as the EU’s largest economy shows signs of recovery despite a flood of imports from China.
Destatis, Germany’s federal statistics office, reported on Friday that German industrial output rose 0.2% in real terms from May to June. The increase was driven largely by production gains in the country’s flagship automotive sector, which grew by 3.6%. This offset declines in energy-intensive and machinery manufacturing, which fell by 1.8% and 3.9%, respectively.
The data means German industrial production rose 0.7% in the second quarter of this year compared to the first quarter.
“Despite the war in the Middle East and soaring energy prices… German industry has shown surprising resilience,” said Carsten Brzeski, global head of macro at ING research.
