German exports, industrial output fall in June

AFP, BERLIN: Germany's industrial output fell 1.4 per cent and exports from Europe's top economy dropped by one per cent in June from the previous month, data showed Friday. Many German companies are struggling with China's slowdown and recent volatility over the Greece crisis, despite the benefits of a low euro, cheap oil and rock-bottom interest rates. "Overall, today's data is a setback for the German economy and bodes ill for second-quarter real GDP growth," said Natixis bank, which revised down slightly its forecast to 0.4 per cent GDP growth quarter- on-quarter. UniCredit also lowered its forecast for the second quarter GDP figure to be released next Friday to 0.4 per cent, from 0.5 per cent, although it called the output drop "a statistical fluke." Industrial production, adjusted for seasonal swings and inflation, unexpectedly fell 1.4 per cent over
the month, with a particularly severe 4.5 per cent drop in construction
output, said the economy ministry.
Analysts polled by financial services provider FactSet had forecast a small increase of 0.4 per cent.
Economists at BayernLB blamed the Greece crisis and the effects of an earlier major train strike for the disappointing figure and predicted a recovery, given a recent rise in factory orders.

German exports, industrial output fall in June

AFP, BERLIN: Germanys industrial output fell 1.4 per cent and exports from Europes top economy dropped by one per cent in June from the previous month, data showed Friday. Many German companies are struggling with Chinas slowdown and recent volatility over the Greece crisis, despite the benefits of a low euro, cheap oil and rock-bottom interest rates. Overall, todays data is a setback for the German economy and bodes ill for second-quarter real GDP growth, said Natixis bank, which revised down slightly its forecast to 0.4 per cent GDP growth quarter- on-quarter. UniCredit also lowered its forecast for the second quarter GDP figure to be released next Friday to 0.4 per cent, from 0.5 per cent, although it called the output drop a statistical fluke. Industrial production, adjusted for seasonal swings and inflation, unexpectedly fell 1.4 per cent over the month, with a particularly severe 4.5 per cent drop in construction output, said the economy ministry. Analysts polled by financial services provider FactSet had forecast a small increase of 0.4 per cent. Economists at BayernLB blamed the Greece crisis and the effects of an earlier major train strike for the disappointing figure and predicted a recovery, given a recent rise in factory orders.