ALBAWABA – German industrial output plunged in June, for the second consecutive month, according to official data released Monday by the Federal Statistics Office Destatis.
Meanwhile, rising energy prices and higher interest rates have begun to take their toll on Germany, as the economy ministry warned of a gloomy outlook, Agence France-Presse (AFP) reported.
German industrial output plunged in June by 1.5 percent, which is significantly higher than the 0.1 percent dip last May, the data showed.
The country's industrial heavyweight automobile sector showed a significant fall of 3.5 percent.
Overall, the fall in industrial output in July was also three times the expected dip forecast by analysts polled by Factset, who anticipated a 0.5 percent decline, as reported by AFP.
"The outlook for the industrial economy remains gloomy despite the rising demand, because these are strongly affected by fluctuations of big orders," said the economy ministry.
"Given the subdued business and export expectations of companies, there is currently no sign of a noticeable recovery," the ministry statement said.
Germany slipped into a mild recession late in 2022 and the beginning of 2023, amid an energy crisis sparked by Russia's invasion of Ukraine and higher interest rates.
Europe's largest economy is projected to contract by 0.3 percent in 2023, according to the Bundesbank's newest forecasts in June, as reported by AFP.
