Yet another bad news for Germany. After slump in manufacturing orders, which decreased by 2,2% in July compared to June, industrial production also fell. In July, compared to the same previous period, production fell by 4,2%, exceeding (negatively) the expectations of analysts who expected a drop of 3,9%. Compared to June, on the other hand, there is a -0,6% against an expected increase of 0,4%.
At the sectoral level, the manufacturing sector fell by 0,8%, while construction registered an increase of 0,2% (again from month to month). Labor costs grew by 3,2% on an annual basis and by 0,8% on a quarterly basis.
"Industrial activity remains weak," comments the economy ministry. “Given the difficult start to the second half of the year and the still invisible recovery of industrial orders, there are no prospects for improvement”.
We recall that last August 19, the Bundesbank has sounded the recession alarm for the German economy, “The German economy remains weak even in the summer of 2019″, wrote the central institute, which means that: “even in the current quarter, economic activity may ease slightly”. Not only that: “the end of the slowdown is not yet in sight,” Bancal specified in her report.
The markets seem to ignore the news for the moment. The Frankfurt Stock Exchange, the only one together with Piazza Affari to open in positive territory, slows down and after the data on industrial production but remains just above parity (+0,1%). The other European lists were weak: Milan (-0,1%), Paris (-0,08%), Madrid (-0,3%). Little move also London (-0,1%).
