German factory production at highest level for 18 months
Factory output rose by 2% month-on-month on the back of strong growth in the construction sector, after a 1.2% fall in July.
German industrial production soared to its highest level in 18 months in August, according to data released by the country's statistics agency. Factory output increased by 2% month-on-month, following a 1.2% decline in July. The construction sector, which expanded by over 9% in August, was buoyed by public contracts for infrastructure upgrades.
Machinery and equipment production also rose by more than 5% in August. However, the struggling auto sector saw a decline of over 5%, partly due to factory holidays. Despite this, industrial activity overall remains subdued, with energy-intensive industries struggling due to rising oil prices and restricted shipping on the Rhine River.
The economy ministry acknowledged that the recovery was still fragile. Economic experts noted that Germany's cyclical rebound gained new momentum in August after a setback in July. Leading institutes have recently upgraded their growth forecasts for the German economy for 2026 to 1.3%, citing the country's resilience in the face of the Iran war fallout.
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- German factory production at highest level for 18 months freemalaysiatoday.com
