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Germany’s industrial production increased in August, raising hopes of a stabilization of industry in Europe’s largest economy after an unexpected decline in the second quarter of 2024.
According to data published on Tuesday by the Federal Statistical Office (Destatis), industrial production increased by 2.9% in August compared to the previous month (when there was a decline of 2.9%), while analysts estimated an advance of 0.8%. The growth was driven by the automotive industry, according to Destatis.
A less volatile indicator shows that between June and August 2024, industrial orders fell by 1.3% compared to the previous three months.
In August, the production of vehicle, trailer and semi-trailer engines increased by 19.3%. This production compared to the previous month (when there was a decline of 8.2%). In industry – excluding energy and construction – there was an advance of 3.4%. Energy production rose by 2.3%, and in construction there was an advance of 0.3%.
Industrial production increased above estimates in August
„There are no signs of recovery in the industrial sector for now. Confidence in the industrial sector remains low. The new orders did not continue in August the upward trend of recent months.,” reads a press release from the Ministry of Economy.
Structural difficulties, including high energy prices, slowing demand in China for German industrial goods. The roblems facing the auto sector with electric vehicle production will continue to weigh on Germany’s industrial production., said Franziska Palmas, an economist at Capital Economics.
