Unexpected Decline in Industrial Production

In a surprising turn of events, Germany's industrial production experienced a significant monthly decrease of 1.9% in June, according to the Federal Statistical Office Destatis. This decline not only fell short of analysts' expectations but also marked the lowest level since May 2020.

Sector-Specific Impacts

The preliminary data highlighted a sharp 11% monthly drop in the pharmaceutical industry, leading the downturn. The food industry and mechanical engineering followed, with declines of 6.3% and 5.3% respectively. Conversely, the energy sector saw a positive shift, with output increasing by 3.1% compared to the previous month.

Annual and Adjusted Figures

On an annual basis, industrial output in Germany decreased by 3.6%. When excluding energy and construction, the figures reveal a more pronounced decline: a 2.8% drop month-on-month and a 4.7% decrease year-on-year.