The report of the Federal Ministry of Economics and Technology unveiled encouraging data on the German industrial output, which increased by 0.7% month-on-month in July well below analysts’ expectations of a 1.1% rise. However, annual growth turned out to be more positive with a 0.5% rise.
Downwardly revised industrial production in Germany was 0.9% down when compared to May’s report, but posted a 0.9% rise against the corresponding period of the previous year.
Both economic recovery in the eurozone and growing domestic demand have a positive impact on German industrial companies. The manufacturing sector rose by 0.3% in July, capital goods production grew by 2.8%, and energy sector was 1.9% up while output for consumer and intermediate goods shrank 3.7% and 0.8% respectively.
On the back of lower unemployment and mounting domestic consumption, the German central bank upgraded its short-term forecast for economic growth. Thus, the GDP is now expected to increase by 1.7% in 2015 and by 1.8% in 2016, while December’s forecast predicted a rise by 1% and 1.6% respectively.
