Berlin, Germany (4E) – Industrial production in Germany declined at a faster-than-expected pace in July after gaining in June, further signs of moderating growth in Europe’s largest economy.
On a seasonally and calendar-adjusted basis, industrial production declined 1.7 percent in July from the previous month, lower than the 2 percent rise in June, according to the Federal Ministry of Economics and Technology’s preliminary data. Economists had predicted July production to shrink by 0.5 percent.
While June’s industrial production was revised lower, it is still the strongest performance since March 2012 as Germany helped the euro zone emerge from its longest recession. The nation, which will hold elections in a few weeks, is expected to see the economy “normalize and stabilize” through the rest of 2013, according to a Bundesbank statement on Aug. 19.
Among the factors that led to the drop include the 3.4 percent fall in capital goods output from the previous month, and the 1 percent decline in the production of intermediate goods. Costs of consumer goods were lower by 1.2 percent in July than the previous month.
When adjusted for working days and seasonal changes, German exports dropped 1.1 percent in July from the previous month, the Federal Statistics Office said Friday in Wiesbaden. Economists forecast a gain of 0.7 percent, according to data compiled by Bloomberg News.