{"id":14515,"date":"2025-07-07T16:22:43","date_gmt":"2025-07-07T20:22:43","guid":{"rendered":"https:\/\/sharewatch.com\/wp\/2025\/07\/07\/german-industrial-output-rose-more-than-expected-in-may\/"},"modified":"2025-07-07T16:22:43","modified_gmt":"2025-07-07T20:22:43","slug":"german-industrial-output-rose-more-than-expected-in-may","status":"publish","type":"post","link":"https:\/\/sharewatch.com\/wp\/2025\/07\/07\/german-industrial-output-rose-more-than-expected-in-may\/","title":{"rendered":"German industrial output rose more than expected in May"},"content":{"rendered":"
\n

German industrial production rose more than expected in May thanks to the automotive industry and energy production, the federal statistics office said today.<\/p>\n

Production rose 1.2% over the previous month, while analysts polled by Reuters had predicted it to be flat at 0%.<\/p>\n

“It’s too early to give the all-clear, but signs of at least a cyclical rebound, albeit from low levels, are increasing,” said Carsten Brzeski, global head of macroeconomics at ING.<\/p>\n

Still, in the near term, he said the downside risks have increased due to ongoing trade tensions, a stronger euro, and a dry and hot summer so far which has brought water levels in Germany’s rivers to very low levels for the time of year.<\/p>\n

The increase in May could mean that the manufacturing sector is on a path to recovery, said Cyrus de la Rubia, chief economist at Hamburg Commercial Bank.<\/p>\n

While production levels are still well below those seen after the initial post-pandemic recovery phase, there has been upward momentum for several months, de la Rubia said.<\/p>\n

Production in April and May was slightly above the average of the first quarter, fueling hopes that industry has turned a corner, said Ralph Solveen, senior economist at Commerzbank.<\/p>\n

While gross domestic product is hardly expected to grow in the second quarter, growth should continue in the following quarters, by policy changes that will provide a significant boost next year at the latest, Solveen said.<\/p>\n

The German government has approved a tax relief package to stimulate investment and bring the economy back to growth after two years of contraction.<\/p>\n

Production in May was buoyed by growth of 4.9% in the automotive industry from April and by 10.8% in energy production.<\/p>\n

The increase in production in the pharmaceutical industry by 10% in May also had a positive impact on the overall result.<\/p>\n

The better-than-expected German industrial production figures for May are partly due to continued tariff front-running in the pharmaceuticals sector, said Franziska Palmas, senior Europe economist at Capital Economics,referring to the US buying more from Germany before new tariffs take effect.<\/p>\n

However, output in other sectors is also proving more resilient to tariffs than expected, Palmas said.<\/p>\n

The less volatile three-month on three-month comparison showed that production was 1.4% higher in the period from March to May than in the previous three months.<\/p>\n

The statistics office also revised the figure for April to a 1.6% drop in production, more than the 1.4% decline in the provisional figure.<\/p>\n

German industrial orders fell by 1.4% in May, ending a recent pickup, due to a slump in demand from within the euro zone, data showed last week.<\/p>\n

Industrial orders remain weak and the rapid appreciation of the euro over the past few months will weigh on production in the near term, Palmas said.<\/p>\n<\/section>\n","protected":false},"excerpt":{"rendered":"

German industrial production rose more than expected in May thanks to the automotive industry and energy production, the federal statistics office said today. Production rose 1.2% over the previous month, while analysts polled by Reuters had predicted it to be flat at 0%. “It’s too early to give the all-clear, but signs of at least […]<\/p>\n","protected":false},"author":1,"featured_media":14516,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"ocean_post_layout":"","ocean_both_sidebars_style":"","ocean_both_sidebars_content_width":0,"ocean_both_sidebars_sidebars_width":0,"ocean_sidebar":"","ocean_second_sidebar":"","ocean_disable_margins":"enable","ocean_add_body_class":"","ocean_shortcode_before_top_bar":"","ocean_shortcode_after_top_bar":"","ocean_shortcode_before_header":"","ocean_shortcode_after_header":"","ocean_has_shortcode":"","ocean_shortcode_after_title":"","ocean_shortcode_before_footer_widgets":"","ocean_shortcode_after_footer_widgets":"","ocean_shortcode_before_footer_bottom":"","ocean_shortcode_after_footer_bottom":"","ocean_display_top_bar":"default","ocean_display_header":"default","ocean_header_style":"","ocean_center_header_left_menu":"","ocean_custom_header_template":"","ocean_custom_logo":0,"ocean_custom_retina_logo":0,"ocean_custom_logo_max_width":0,"ocean_custom_logo_tablet_max_width":0,"ocean_custom_logo_mobile_max_width":0,"ocean_custom_logo_max_height":0,"ocean_custom_logo_tablet_max_height":0,"ocean_custom_logo_mobile_max_height":0,"ocean_header_custom_menu":"","ocean_menu_typo_font_family":"","ocean_menu_typo_font_subset":"","ocean_menu_typo_font_size":0,"ocean_menu_typo_font_size_tablet":0,"ocean_menu_typo_font_size_mobile":0,"ocean_menu_typo_font_size_unit":"px","ocean_menu_typo_font_weight":"","ocean_menu_typo_font_weight_tablet":"","ocean_menu_typo_font_weight_mobile":"","ocean_menu_typo_transform":"","ocean_menu_typo_transform_tablet":"","ocean_menu_typo_transform_mobile":"","ocean_menu_typo_line_height":0,"ocean_menu_typo_line_height_tablet":0,"ocean_menu_typo_line_height_mobile":0,"ocean_menu_typo_line_height_unit":"","ocean_menu_typo_spacing":0,"ocean_menu_typo_spacing_tablet":0,"ocean_menu_typo_spacing_mobile":0,"ocean_menu_typo_spacing_unit":"","ocean_menu_link_color":"","ocean_menu_link_color_hover":"","ocean_menu_link_color_active":"","ocean_menu_link_background":"","ocean_menu_link_hover_background":"","ocean_menu_link_active_background":"","ocean_menu_social_links_bg":"","ocean_menu_social_hover_links_bg":"","ocean_menu_social_links_color":"","ocean_menu_social_hover_links_color":"","ocean_disable_title":"default","ocean_disable_heading":"default","ocean_post_title":"","ocean_post_subheading":"","ocean_post_title_style":"","ocean_post_title_background_color":"","ocean_post_title_background":0,"ocean_post_title_bg_image_position":"","ocean_post_title_bg_image_attachment":"","ocean_post_title_bg_image_repeat":"","ocean_post_title_bg_image_size":"","ocean_post_title_height":0,"ocean_post_title_bg_overlay":0.5,"ocean_post_title_bg_overlay_color":"","ocean_disable_breadcrumbs":"default","ocean_breadcrumbs_color":"","ocean_breadcrumbs_separator_color":"","ocean_breadcrumbs_links_color":"","ocean_breadcrumbs_links_hover_color":"","ocean_display_footer_widgets":"default","ocean_display_footer_bottom":"default","ocean_custom_footer_template":"","ocean_post_oembed":"","ocean_post_self_hosted_media":"","ocean_post_video_embed":"","ocean_link_format":"","ocean_link_format_target":"self","ocean_quote_format":"","ocean_quote_format_link":"post","ocean_gallery_link_images":"on","ocean_gallery_id":[],"footnotes":""},"categories":[19,20],"tags":[],"class_list":["post-14515","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-news","entry","has-media"],"_links":{"self":[{"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/posts\/14515","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/comments?post=14515"}],"version-history":[{"count":0,"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/posts\/14515\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/media\/14516"}],"wp:attachment":[{"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/media?parent=14515"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/categories?post=14515"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/tags?post=14515"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}