According to official data released on Thursday, German industrial production declined for a third consecutive month in July, fueling concerns of a protracted downturn in Europe’s largest economy.
Destatis’ seasonally adjusted data show that output decreased by 0.8 percent from the previous month, following a 1.4-percent decline in June.
FactSet’s analysts had predicted a less severe decrease of 0.35 percent.
As a result of rising energy costs, inflation, and a deteriorating Chinese economy, Germany’s vital industrial sector has been dealing with a number of challenges lately.
At the beginning of the year, the German economy began to contract, and it remained flat throughout the second quarter.
According to IMF predictions, Germany will be the only significant advanced economy to experience economic contraction in 2023.
The result for industrial output for July comes one day after data from Destatis revealed a greater decline in industrial orders for July than was anticipated.
The latest data “underscores the ongoing crumbling of the economy,” said LBBW economist Jens-Oliver Niklasch.
“The third quarter is likely to bring a decline in economic output,” he added.
