German industrial production falls 1.1% in July

German industrial production dropped 1.1% in July compared with the previous month, according to provisional data released by the Federal Statistical Office (Destatis) on Monday.

The country saw a 1.6% decline in industrial production on an annual basis in July.

Destatis revised June's month-on-month production figure to flat from a previous estimate of a 0.2% increase.

The automotive industry recorded a significant 9.2% monthly drop in production in July.

The German Association of the Automotive Industry attributed this sharp decline to a multiweek production shutdown.

Energy production increased 4.7% in July, driven primarily by electricity generation from wind power and photovoltaics.

Production in industry excluding energy and construction decreased 2.2% from June.

The production of capital goods fell 3.4%, consumer goods dropped 2.2% and investment goods decreased 0.2% in July.

Outside the industrial sector, production in construction grew 0.9% month-on-month.

Energy-intensive industrial branches saw a 1.7% decrease in production in July compared with June.

A less volatile three-month comparison revealed that overall industrial production grew 0.4% from May to July compared with the previous three months.