BERLIN (GERMANY) – German industrial output surpassed expectations in July, indicating that the country faces a gradual return to production levels that existed before the coronavirus pandemic, data showed on Monday.
Industrial output increased by 1.2% on the month for the third time after record dip in March and April, figures released by the Statistics Office showed.
The automotive sector had faced a heavy blow before the crisis because of falling demand and a visible shift to electric vehicles. However, it saw a growth in its activity by almost 7% month-on-month. That said, the production levels remained around 15% lower than in February.
Carsten Brzeski, chief euro zone economist at ING, said, “The German economy remains on track for a strong surge in the third quarter. It is too early to tell how much momentum will be left thereafter.”