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German manufacturing soars in June

Published: 07 Aug 2013 12:58 GMT+02:00

The figure for June represented a 2.4 percent increase from the outcome of the previous month which was revised slightly upwards to show a 0.8 percent drop, according to initial data from the economy ministry.

The seasonally, price and calendar-adjusted rise in industrial production widely overshot expectations of economists polled by Dow Jones Newswires, who had reckoned on a June increase of 0.3 percent.

The high jump came on the heels of May when an above-average number of so-called bridging days, when staff take an extra day or two off around a national holiday, curbed industrial production.

"All in all industrial production seems however to have overcome its phase of weakness," the ministry said in a statement.

"Current business climate indicators point to progress in the positive development of production," it added.

The construction sector, which had been hit by a long and severe winter, saw production grow by 1.6 percent in June, while for manufacturing, the rise was 2.2 percent, it said.

Taken over a two-month period for May and June, industrial production grew 1.3 percent compared to March-April.

Annalisa Piazza, an economist at Newedge Strategy, said the June industrial production figure suggested that the German factory sector gained some momentum in recent months.

"All in all, an encouraging report that supports the idea that Germany remained the main growing economy in Q2 in the eurozone despite some signs of sluggishness during the spring months," she said.

The results come a day after the economy ministry said that German industrial orders, a key measure of demand for goods at home and abroad, rose 3.8 percent in June from the month earlier.

AFP/The Local (news@thelocal.de)

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