Industrial production in Germany is at its lowest level since May 2020, when the country faced an economic crisis caused by the coronavirus pandemic, the Federal Statistical Office of Germany reported.
Industrial production fell by 1.9% in June compared to May. The most significant declines this month were in mechanical engineering (-5.3%), pharmaceuticals (-11%) and the food industry (-6.3%). On the contrary, positive dynamics were registered in the energy sector (+3.1%).
The agency also revised its preliminary estimates for May - production this month grew by only 0.1% compared to April, and not by 1.2%, as previously thought. The agency explained such a sharp change in the estimate by the fact that some automakers sent corrected data on their business results for the month.
According to the Reuters agency, the decline in June was unexpectedly sharp - experts expected a decrease of 0.5%.
In recent years, Germany has been experiencing a prolonged economic crisis. Initially, it was caused by the COVID-19 pandemic, then intensified after the suspension of Russian gas supplies. Earlier, members of the German government's expert council on economic development revised downward the country's economic growth forecast for 2025. Given the possible negative effect of increased tariffs from the United States, Germany could face a recession for the third year in a row.