BSS/AFP, Frankfurt Am Main :
Industrial production in Germany slipped in July, official data showed Friday, following up a weak new orders figure the day before.
Output fell 1.1 percent month-on-month, federal statistics authority Destatis said in figures adjusted for price, seasonal and calendar effects.
That disappointed forecasts from analysts surveyed by Factset, who had reckoned with a 0.2 percent increase.
Production was lower across manufacturing firms, with capital goods makers shedding 2.5 percent, producer goods makers 1.4 percent and consumer goods 0.9 percent.
Construction output was the only sector to report an increase, while energy firms generated the same amount as last month.
Economic growth in Germany has slowed from the high pace seen in late 2017, as trade war fears have weighed on confidence in the export-reliant country.
Think-tank DIW predicted Thursday annual growth of 1.8 percent, saying “the German economy is pressing slightly on the brake pedal” following last year’s 2.2-percent expansion. In a separate release, Destatis said Germany’s trade balance – total exports minus total imports – stood at 16.5 billion euros ($19.2 billion), down from 18.8 billion one year ago.
In July the country spent some 94.5 billion euros on imports, but sold 111 billion euros abroad.
At 12.0 percent year-on-year, growth in imports outstripped the 7.6 percent expansion in exports.
Germany’s massive trade surplus is a bugbear for many of its allies and partners in Europe and further afield, especially US President Donald Trump.
Friendly governments and international economic organisations like the International Monetary Fund regularly urge Berlin to boost spending at home to smooth out the imbalance, which they argue harms other countries’ economies.
Industrial production in Germany slipped in July, official data showed Friday, following up a weak new orders figure the day before.
Output fell 1.1 percent month-on-month, federal statistics authority Destatis said in figures adjusted for price, seasonal and calendar effects.
That disappointed forecasts from analysts surveyed by Factset, who had reckoned with a 0.2 percent increase.
Production was lower across manufacturing firms, with capital goods makers shedding 2.5 percent, producer goods makers 1.4 percent and consumer goods 0.9 percent.
Construction output was the only sector to report an increase, while energy firms generated the same amount as last month.
Economic growth in Germany has slowed from the high pace seen in late 2017, as trade war fears have weighed on confidence in the export-reliant country.
Think-tank DIW predicted Thursday annual growth of 1.8 percent, saying “the German economy is pressing slightly on the brake pedal” following last year’s 2.2-percent expansion. In a separate release, Destatis said Germany’s trade balance – total exports minus total imports – stood at 16.5 billion euros ($19.2 billion), down from 18.8 billion one year ago.
In July the country spent some 94.5 billion euros on imports, but sold 111 billion euros abroad.
At 12.0 percent year-on-year, growth in imports outstripped the 7.6 percent expansion in exports.
Germany’s massive trade surplus is a bugbear for many of its allies and partners in Europe and further afield, especially US President Donald Trump.
Friendly governments and international economic organisations like the International Monetary Fund regularly urge Berlin to boost spending at home to smooth out the imbalance, which they argue harms other countries’ economies.
