BERLIN, Aug. 7 (Xinhua) — Germany’s industrial production rose in June, driven by a surge in the automotive sector, according to the Federal Statistical Office on Wednesday. Overall industrial output increased by 1.4 percent compared to the previous month.
The auto industry saw a significant rebound, with production increasing by 7.5 percent in June, reversing a 9.9-percent drop in May. Other sectors, including energy and construction, also recorded varying degrees of growth.
However, quarterly manufacturing production in Europe’s largest economy was 1.3 percent lower in the second quarter compared to the first three months of the year.
The German Economics Ministry said that although recent production figures showed improvement, the industrial economy is expected to remain sluggish due to pessimistic business expectations in the manufacturing sector.
“In light of the persistently low level of incoming orders from abroad, a broad economic recovery is not anticipated in the near term,” the ministry said.
This sentiment was echoed by the ifo Institute for Economic Research in a report on Wednesday, which highlighted an increase in order shortages. The report indicated that 43.6 percent of manufacturing companies faced a lack of orders in July, up from 39.5 percent in April, with significant impacts on the electronics, automobile and chemical sectors.
Klaus Wohlrabe, an expert at ifo, noted that the lack of orders is slowing down the German economy, affecting nearly every industry.
