Germany's Industrial Output Declines as Exports Surpass Expectations
Germany's industrial output fell 1.9% in June, reaching its lowest since May 2020, while exports rose 0.8%, exceeding expectations. This marks the second consecutive month of declining industrial orders, impacted by reduced foreign demand. Overall, exports to the European Union grew, despite ongoing U.S. tariffs impacting trade.
Germany's industrial sector experienced a significant downturn in June, with outputs plummeting to their lowest levels since the pandemic year of 2020. The federal statistics office reported a 1.9% month-on-month drop, overshooting the anticipated 0.5% decline. This downturn reflects a partial return to early pandemic conditions.
In a second consecutive month of decline, German industrial orders fell by 1%, largely due to diminished foreign demand. However, on a brighter note, exports did see an unexpected rise, climbing by 0.8% over the month. Notably, exports to EU countries increased by 2.4%, partially offsetting the impact of decreased shipments to non-EU nations.
Despite a 2.1% drop in exports to the United States, Europe's largest economy could be facing prolonged challenges amid U.S. tariffs. Although the trade surplus narrowed to 14.9 billion euros in June, the U.S. remains a key trading partner with significant bilateral trade interests.(With inputs from agencies.)
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