Germany's production rises 0.1% in July from June
08 September 2010 16:40 [Source: ICIS news]
TORONTO (ICIS)--?xml:namespace>Germany's production grew 0.1% in July from June, after a revised 0.6% decline in June from May, the country’s economics ministry said on Wednesday.
Economists polled by a German news agency had expected 0.8% sequential growth in July.
The latest production data, and Tuesday's report of a decline in July’s industrial orders, suggest that growth in Europe’s largest economy was slowing down after a strong second quarter.
On a two-month sequential comparison – June/July versus April/May – production rose 0.9%, largely due to stronger industrial output, whereas output in building and construction fell, the ministry said.
Compared with June/July 2009, production rose 10.8%.
The ministry said that overall ouput growth was normalising after an “extraordinarily strong recovery” in the spring.
Industrial production was expected to continue to grow, albeit at a lower pace, it added, pointing to underlying order trends and economic sentiment indicators.
Germany’s federal bank, the Bundesbank, recently raised its forecast for the country's 2010 GDP growth to 3.0%, from its earlier projection of 1.9%. The growth would come after a 4.9% decline in 2009 from 2008.
Last week, Germany’s chemical producers trade group VCI projected the country’s full-year 2010 chemical production growth at 11.0%, up from 8.5% in an earlier forecast, after a strong second quarter. The growth would come after a 10.0% decline in 2009 from 2008.
However, Germany’s chemical employers warned against euphoria from the “unexpectedly strong” recovery in the industry.
The recent double-digit year-over-year growth in sales and production came against weak 2009 comparison periods, and continued growth at such rates could not be taken for granted, said Wiesbaden-based chemical employers trade group BAVC.
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