Key facts
- Germany's industrial production fell by 1.5% in May compared to April.
- Economists had predicted a 0.5% increase.
- Manufacturing output decreased by 1.3%.
- Construction sector output dropped by 1.7%.
- Energy production saw a 1.1% increase.
Germany's industrial production experienced a setback in May, contracting by 1.5% from the previous month, according to data released by the Federal Statistical Office (Destatis). This figure fell short of market expectations, which had anticipated a modest increase of 0.5%.
The downturn was primarily driven by a significant decline in manufacturing output, which decreased by 1.3%. The construction sector also contributed to the overall contraction, with a drop of 1.7% in its output. However, energy production provided a slight counterbalance, showing an increase of 1.1%.
This latest data underscores the persistent challenges facing Europe's largest economy, with various sectors grappling with subdued demand and ongoing economic uncertainties. The figures suggest that the German industrial sector is struggling to gain momentum.