Germany’s industrial output fell more than expected in July

Germany’s industrial output fell slightly more than expected in July, the Federal Statistics Office said on Thursday, highlighting the challenges facing the sector after Europe’s largest economy slumped in the winter.

Production fell 0.8 percent in July compared to the previous month. Analysts in a poll conducted by Reuters expected industrial output to decline by 0.5 percent.

The data revealed that on a quarterly basis, which is less volatile than monthly, industrial output fell 1.9 percent between May and July from the previous quarter.

The manufacturing sector in Germany has witnessed a difficult year so far due to falling orders, faltering production, and rising prices. The final HCOP Manufacturing Purchasing Managers’ Index fell for the sixth straight month in July.

According to the data, industrial output (manufacturing industries excluding energy and construction) contracted 1.8 percent in July compared to June, while production of capital goods fell 2.9 percent and production of consumer goods fell 1 percent.