Germany’s industrial output saw a steep decline in August, signaling further weakness in the Eurozone’s largest economy. According to data released Wednesday by the federal statistics office, Destatis, industrial production dropped 4.3% month-on-month, adjusted for seasonal and calendar effects. Economists had forecast a milder 1% decline, following a revised 1.3% gain in July.
On an annual basis, production fell 3.9% in August compared with a 1.5% year-over-year increase in July, underscoring the mounting challenges facing the country’s manufacturing sector. The downturn reflects subdued global demand, persistent supply bottlenecks, and elevated energy costs that continue to pressure German industry.
EUR/USD reaction
The euro weakened notably after the data release. At the time of writing, EUR/USD was trading firmly lower near 1.1620, as traders reacted to signs of deepening economic slowdown in the Eurozone’s industrial powerhouse.
