The production of the industry also shrunk in June. Compared with the same period a year earlier, production was 2.2 percent lower, reports the Central Bureau of Statistics (CBS) on Friday. It is the fourth consecutive month that production is lower.
Apart from a few small growth figures in January and February, the industry has been shrinking since the last months of 2018.
The shrinkage is also widely supported within the business classes. Only the machine industry and food industry grew. The largest contraction, namely 7.4 percent, was noted in the production of electrical and electronic devices.
Adjusted for seasonal and working-day effects, industrial production fell by 0.8 percent from May to June. Adjusted for these effects, there was a rising trend in production between mid-2014 and early 2018. Since then the trend has been slightly declining.
Product confidence did increase last July. Entrepreneurs were less negative about the expected activity and more positive about the stocks. On the other hand, the German ifo index fell, a measure of German producer confidence.