Financial News: German Industrial Production Rebounds In May

German Industrial Production Rebounds In May

07/07/2025 - 05:36:00 (RTTNews)

(RTTNews) - Germany's industrial production rebounded in May driven by robust demand for automobile and pharmaceutical products, official data revealed on Monday.

Data released by Destatis showed that industrial production grew 1.2 percent in May from a month ago, confounding expectations for a decline of 0.6 percent. Output in April was revised down to show a 1.6 percent fall compared to the 1.4 percent drop estimated initially.

On a yearly basis, industrial production expanded 1.0 percent, in contrast to the 2.1 percent decrease seen in April.

Data revealed a strong demand for German automotive and pharmaceutical products. Auto industry grew 4.9 percent and pharmaceutical industry expanded 10.0 percent.

Excluding energy and construction, industrial production climbed 1.4 percent. Energy production surged 10.8 percent, while construction output was down 3.9 percent.

Production of capital goods moved up 4.1 percent and that of consumer goods gained 0.5 percent. Meanwhile, intermediate goods output declined 2.1 percent.

On the one side, downside risks have clearly increased on the back of ongoing trade tensions, the stronger euro and hot summer weather bringing water levels in Germany's rivers to almost unprecedentedly low levels, ING economist Carsten Brzeski said.

But the economist noted that the fact that the German government is implementing its fiscal plans without setbacks is keeping hopes high for more investment and stronger growth in 2026 and beyond. Today's industrial production data has increased the likelihood that German industry is experiencing more than only a front-loading-driven rebound, Brzeski added.

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