German production data recover in June
German production data improved by 0.8% compared to the previous month, according to the latest data released by the German Federal Statistical Office.
The figures mark an improvement compared to May, when production data decreased by 0.9%. The progress was driven by stronger data in the production of capital goods, which increased by 3.5% and the industrial sector, excluding energy and construction, which grew by 1.5% month on month.
Meanwhile, the production of intermediate goods decreased by 0.7%. Energy production was down by 2.7% in June 2016 and the production in construction decreased by 0.5%.
Christian Lips, analyst at Nord LB comments on the results, stressing that the results, which are notoriously volatile and prone to changes, should not be overstated. He explains weaker Mai figures partly with the large number of public holidays that month.
“At least we can note that the Brexit effect has not lead to an output reduction in manufacturing in June. Nevertheless, it is too early to speak of an all-clear signal. For now, stock markets responded positively, with the Dax opening this week above the 10.400 point mark. Equity markets still seem euphoric following the strong US job market data published on Friday” Lips adds.