Better and worse economic data from Germany have been intertwining regularly lately. This time the results turned out to be weak. Industrial production on the Rhine in July 2025. fell by 1.9 percent. on a monthly basis – the Federal Statistical Office said on Thursday. Production reached the lowest level since May 2020, when the pandemic caused a sharp decline, ”added Destatis.
This is a considerable disappointment and contrast to the surprisingly good original data for May. Economists predicted that a monthly decrease would only “0.6 percent. To make matters worse, the readings for May from 1.2 percent were revised down. growth to a decline by 0.1 percent The office assigned a correction to corrections introduced by plants in the automotive sector.
“These two facts imply a decrease in industrial production in Germany in the second quarter by 1.3 percent kW/kw. Nevertheless, we do not see such a decrease in production in the data on revolutions in industry, which suggests that June production will be revised up” – wrote the economists of Bank Pekao, commented on Thursday data.
The decrease in industrial production of the second quarter compared to the previous three months amounted to 1 percent, which means a return to levels recently observed in the first half of 2020.
In an annual basis, a drop in industrial production was reported by 3.6 percent. Compared to a decline by 0.2 percent In May (the data was also revised here, because an increase of 1 % was originally demonstrated).
“It shows how difficult it is to the German industry to get out of recession in conditions of increasing commercial wars and in the initial phase of the implementation of the expansive fiscal policy by the German authorities,” the economists of Bank Millennium pointed out.
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Earlier, it seemed that German industrial production was reflected this year after a sharp decline in 2024, but new data show that the downward trend would remain in 2025 – said Franziska Palmas, an elder economist for Europe at Capital Economics.
“Medium -term forecasts for German industry remain unfavorable, because poor economic growth in both Europe and in China, as well as the growing competition from Chinese producers will probably strain strongly to the demand to German industrial goods” – added Palmas, quoted by Reuters.
