The Federal Statistical Office (Destatis) reported on Friday that Germany’s industrial production dropped 0.6 percent m-o-m in July after a revised 1.1 percent m-o-m decrease in the prior month (primary a decline of 1.5 percent m-o-m).

Economists had forecast a 0.2 percent rise in July.

The major contributors to the July production fall were lower outputs of capital goods (-1.2 percent m-o-m) and intermediate goods (-0.7 percent m-o-m) as well as decreased energy production (-1.3 percent m-o-m). At the same time, production of consumer goods (+0.6 percent m-o-m) and construction output (+0.2 percent m-o-m) recorded increases.

Excluding energy and construction, production in the industry was down by0.8 percent m-o-m in July.

In y-o-y terms, industrial production fell 4.2 percent in July.