September 07, 2022 06:28 GMT
GERMANY JUL IP % -0.3 %M/M (FCST -0.6%); JUN +0.8%r M/M
GERMANY JUL IP -1.1% Y/Y (FCST -2.1%); JUN -0.1%r Y/Y
- German industrial production saw a slower-than-expected contraction in July, falling by -0.3% m/m and -1.1% y/y.
- This data confirms the industrial sector continues to struggle under the weight of high energy prices and persistent supply issues, ahead of the ECB's meeting tomorrow. A 75bp hike remains the marginally likelier outcome.
- Energy-intensive branches took the largest hit, with production falling by -1.9% m/m as producers grapple with historically high energy costs.
- Production declined across the board, notably in consumer goods (-2.4%), largely underpinned by a -3.0% fall in non-durables incl. food, whilst capital goods (-0.8%) and intermediate goods (-0.6%) saw softer contractions. Less holiday leave-taking in 2022 provided a small boost to the July figures.
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