Surprising June slide in German production was the first this year, as Monday report said, however the total second quarter results showed rise. Output down 1.1% after 1.2% gain in May, as per the Economy Ministry. Reuters poll predictions were 0.2% increase.
At the same time industrial plants and construction companies in EU's leading economy created 1.8% more in 3 months of the second quarter than in the same period prior to it. Officials stated that order volumes and other business environment indicators suggest a positive climbing trend is keeping up.
ING Bank’s economist C. Brzeski said that regardless of the unexpected drop shown today, EU’s powerhouse is on the right way to achieve good results this quarter. He also pointed out that a controversy over automotive emissions and cartel allegations Germany mired in could significantly affect the economy, because vehicle production constitutes nearly one fifth of the country’s exports.
This data came after a bunch of other positive economic news, depicting German economy in a favourable light that could give a strong impetus for Angela Merkel to be re-elected for the next fourth term after voting which is to take place the next month.