German industrial production decreased much more than expected in August in front of a strong drop in automotive production, since the early demand before the US rates dried.
Industrial production decreased by 4.3% compared to the previous month, said the federal statistics office on Wednesday, the largest drop since March 2022, shortly after the invasion of Ukraine by Russia. Analysts consulted by Reuters provided 1.0%.
The production in the largest German industrial industry, the automotive industry, decreased by 18.5% in the previous month, due to the combination of annual closings of the holidays for the holidays and production exchanges, said the statistical office.
The question of the main German commercial partner, the United States, slowed down after months of initial purchases before the rates imposed by President Donald Trump.
“Although there may be some specific factors at stake, we fear that the strong decline in industrial production strongly reflects the end of the U.S. tariff anticipation”, Carsten Brzeski, Global Macro of Eng.
He warned that the “extremely disappointing” industrial data of August have increased the risk of another quarter of contraction for the German economy, which raised 0.3% in the second quarter compared to the first three months of the year.
Source: Terra

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