German industry slows in July

German industry lost momentum again in July, canceling the recovery implemented in the previous period, due to a sharp drop in manufacturing production (-2.3%). This is the worst figure in the last two years. By contrast, building activity recorded a 1.8% advance.

According to the German Statistical Office Destatis, production fell by 1.5% after a revised 1.1% in June (+ 0.8% the first reading). The figure is much worse than analysts' estimates, which had expected a marginal increase of 0.2%.

The figure, which excludes energy and construction was down by 2.3%. The production of energy increased by 2.6% while construction grew by 2.8%. German manufacturing activity trend recorded a 1.2% decrease.