German Industrial Production Rises For Third Month

(RTTNews) - Germany's industrial production expanded for the third straight month in June, suggesting that the sector remains resilient despite the war in the Middle East and rising energy prices, data from Destatis revealed Friday.

Industrial production logged a monthly growth of 0.2 percent, following May's revised 0.7 percent increase. Output was expected to remain flat after rising for two straight months.

The positive development was primarily attributable to the 3.6 percent rise in the automotive industry and an 8.4 percent expansion in the manufacture of other transport equipment.

Excluding energy and construction, industrial production remained unchanged from May but dropped 0.8 percent from the last year.

Data showed that production of consumer goods gained 1.0 percent and that of capital goods by 0.2 percent. By contrast, intermediate goods output dropped 0.9 percent.

Outside industry, energy production increased 1.9 percent and construction rose edged up 0.1 percent.

On a yearly basis, industrial production dropped 0.1 percent after remaining flat in May.

ING economist Carsten Brzeski said the German industry continued its modest cyclical rebound despite higher energy prices and the Middle East war. However, whether this rebound can really translate into a structural and sustainable recovery remains a different story, he added.