Overview

• German output across industry, construction and energy plunged 1.9% in June, marking its weakest combined level since May 2020.
• Core manufacturing sectors saw sharp June declines with machine building down 5.3%, pharmaceuticals off 11.0% and food processing down 6.3%.
• Preliminary May data were revised from a 1.2% gain to a 0.1% decline following correction notices from several automotive firms.
• Overall exports rose 0.8% in June, but shipments to the United States fell 2.1% for a third straight month.
• Elevated U.S. tariffs and weak non-euro-area demand are expected to keep industrial production subdued in early Q3.