German Output in May Unexpectedly Drops in Sign of Slowdown
- Production declined 1.3% in May vs. estimated 0.1% gain
- U.K. decision to leave the EU could curb German growth
An employee works at a gas turbine factory in Berlin. factory orders fell more than anticipated in December.
Photographer: Krisztian Bocsi/BloombergThis article is for subscribers only.
German industrial production dropped the most in 21 months in May in a sign that the headwinds from a global economic slowdown and political uncertainty in Europe damped activity.
Production, adjusted for seasonal swings, fell 1.3 percent from the previous month, when it rose a revised 0.5 percent, data from the Economy Ministry in Berlin showed on Thursday. Economists in a Bloomberg survey had predicted a 0.1 percent rise in the typically volatile gauge. Output fell 0.4 percent from a year earlier.