2023-08-07 06:54:37
German companies cut back their production surprisingly sharply in June. Industry, construction and energy suppliers together produced 1.5 percent less than in the previous month, as the Federal Statistical Office announced on Monday. Economists surveyed had only expected a minus of 0.5 percent. In May there was a decline of a revised 0.1 percent.
Industry alone produced 1.3 percent less in June than in the previous month. “Despite the recent increase in demand, the outlook for industrial activity remains gloomy because it was strongly influenced by fluctuations in large orders,” commented the German Ministry of Economic Affairs on the development. “In view of the subdued business and export expectations of companies, a noticeable recovery is not yet in sight.”
The ailing German industry has recently recovered somewhat with a surprisingly high number of orders – also due to large orders from the aerospace industry. In June, your orders increased by 7 percent compared to the previous month and thus more strongly than in three years. There had already been unusually strong growth of 6.2 percent in May.
However, leading indicators such as the Ifo business climate suggest that the German economy, which has not grown for three quarters in a row, is still in an economic slump.
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