German industry recorded a drop of 4.3% in August, compared to the previous month. Not only is it a much more significant contraction than expected, it is the largest since June 2020.
According to Destatis, Germany’s statistics office, industrial production fell 4.3% in August, compared to July. The data are provisional and refer to accounts made with seasonal and calendar adjustment.
Now, according to data from Investing.com, that drop was the biggest since June 2020, when the same index fell 17.9%. During that period, remember, companies were largely affected by the constraints associated with the pandemic that began a few months earlier.
Expectations pointed to a decline of 1%, so the numbers now known signal a deterioration in the sector that is more pronounced than expected. The data comes following the 1.3% increase achieved in July (increase confirmed through the same report this Wednesday, October 8).
Furthermore, in the period from June to August (by quarter, the data is less volatile), there was a 1.3% decline in industrial production in Germany, compared to the sum of the previous three months.