Germany’s Industrial Output Struggle Worries Europe

German industrial output rose 0.3% in June from May as concerns over the Ukraine crisis weighed on the economy.

The Economy Ministry figure was lower than many economists forecast and comes after a 1.8% fall in output in May.

The ministry said that, after strong output data in the first three months of 2014, weaker growth was expected.

It comes as the European Central Bank (ECB) prepares to announce its latest interest rate decision, and a day after Italy fell back into recession.

According to the Economy Ministry, manufacturing output edged up by 0.1% and construction output rose by 1.2%.

Taking the period from April to June, industrial output fell by 1.5% compared with the preceding three months, the ministry said.

“The second quarter was weaker, as expected, after the first quarter was exceptionally strong,” the ministry said. “The positive basic trend will continue.”

However, “geopolitical developments may have had a dampening effect,” the ministry said.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza