German Industry Slumps Most in Almost a Year Amid Trade Flux

German industrial production suffered its biggest drop in almost a year, raising the prospect that Europe’s largest economy shrank last quarter by even more than initially estimated.

Output declined 1.9% in June from the previous month, driven by machinery and equipment, pharmaceuticals and food — far more than any economist predicted. The May reading was revised to a slight contraction, and the overall production slump in the second quarter now amounts to 1%, Destatis said on Thursday.