According to preliminary data from the Federal Statistical Office (Destatis), German manufacturing output rose 0.2% month-on-month in June, following a 0.7% increase recorded in May.
The quarterly comparison showed that in the period from April to June, production was 0.7% higher than in the first quarter of this year. According to Kallanish, the positive development was primarily driven by the growth seen in the automotive industry, which increased by 3.6% compared to the previous month.
Growth was also observed in the "other transport equipment" segment, which includes airplanes, ships, trains, and military equipment, where an increase of 8.4% was observed.
In contrast, a decrease in the production of machinery and equipment (by 3.9%) had a negative impact. However, according to the VDMA industry federation, new orders in the mechanical engineering sector also showed a slight increase (see the "Callanish" section).
This is reflected in Destatis statistics on the receipt of orders to the manufacturing industry, which increased by 3.1% compared to the same period last year.
According to the VDMA's explanations, the Statistical Office notes that this jump was caused by several large orders. Excluding these factors, the volume of new orders decreased by 0.5% compared to the previous month. In the comment
The media says that Germany's industry has proved more resilient than expected in the face of economic stagnation and international crises.
"Overall, the German industry has demonstrated amazing resilience. Whether this resilience and the current cyclical upswing can really lead to a structural recovery remains another story," ING bank said in a note.
One of the most serious problems, especially during the summer months, is the critical water levels, which can lead to unprecedented restrictions on production logistics. This factor has not yet appeared in Destatis data for June.
Author: Christian Kel Germany
kallanish.com
