Germany's industrial production rose for a third consecutive month in June, though only slightly. According to preliminary figures from the Federal Statistical Office (Destatis) released on Friday, output in the manufacturing sector grew by 0.2 percent compared with the previous month. On a three-month comparison, industrial production between April and June was 0.7 percent higher than in the preceding three months.
The positive trend was mainly attributable to increases in the automotive industry, the statistics office explained: production here rose by 3.6 percent. In other vehicle manufacturing, which includes aircraft, ships, trains and military vehicles, production climbed even more sharply, by 8.4 percent. Mechanical engineering, by contrast, saw production shrink by 3.9 percent in June compared with the previous month.
"The moderate upward trend in production in the manufacturing sector is continuing into the middle of the year," the Federal Ministry for Economic Affairs stated. As a result, industrial production had "proven quite resilient in the past quarter, despite the external economic headwinds."
The ministry pointed to a recovery in the construction sector. In addition, it noted, "a relative improvement in the competitive position of energy-intensive industries in Germany compared with Asian competitors may also have played a role." Asian countries are heavily dependent on oil and gas from the Gulf region and are therefore affected by supply bottlenecks and sharply higher prices.
Currently, low water levels are holding back further positive development of production in Germany. The historically low water levels on key inland waterways represent "a challenge for the regional supply of raw materials and materials to industrial companies," the ministry explained. Should the reduced inland shipping capacity persist for a longer period, temporary restrictions on the production activity of affected companies could not be ruled out.
From breaking news to thought-provoking opinion pieces, our newsletter keeps you informed & engaged.
By subscribing, you agree to our Terms & Conditions and Privacy Policy.
