When it rains, it pours – and Germany is getting drenched.
Just a day after factory orders came in weak and the construction PMI printed the lowest in five years, Germany turned in a miss on industrial production, which fell 0.6% MoM in July, missing estimates.
Output fell 4.2% YoY, underscoring the malaise evident in other abysmal data points. It was the ninth straight month of YoY declines.
(Bloomberg)
As a reminder, industrial production fell 5.2% YoY in June – that was the worst read in a decade. That doesn’t bode well at a time when the world’s fourth-largest economy is one bad quarter away from a technical recession.
(SocGen)
“The industrial economy remains weak”, the economy ministry said, flatly. “The production level in July is about 1.4% below the average of the second quarter [and] given the weak start to the second half of the year and the lack of recovery in incoming orders, there are still no signs of improvement in the industrial economy”.
Got that? There is no light at the end of this tunnel.
At least not yet.
