Industrial output dropped 1.9% month-on-month, the federal statistics office said, exceeding the 0.5% decline forecast in a Reuters poll of analysts.

“Production reached its lowest point since May 2020, when the pandemic triggered a sharp contraction,” the office added.

A three-month comparison revealed a 1% decline in production in the second quarter, marking a return to levels last seen in the first half of 2020.

The statistics office also revised the data for May to a 0.1% drop from the previous month, compared with a provisional figure of a 1.2% increase.

The office attributed the revision to corrections from establishments in the automotive sector.

Separately, German industrial orders fell unexpectedly by 1% in June, marking the second consecutive month of decline due to reduced foreign demand, data released yesterday showed.

Exports rise

German exports rose 0.8% month-on-month in June, surpassing the 0.5% increase predicted by analysts.

“Exports to EU countries increased by 2.4%, while shipments to non-EU nations fell 1.2%,” the statistics office said.

Exports to the US dropped 2.1% compared with May, marking a third consecutive monthly decline and reaching their lowest value since February 2022.

Germany’s export-oriented economy is expected to be badly affected by US tariffs.

The US was Germany’s biggest trading partner in 2024 with two-way goods trade totalling €253 billion.

Germany’s foreign trade surplus narrowed to €14.9 billion (US$17.39 billion) in June, down from €18.5 billion in May and €20.3 billion in June of 2024.