Berlin: Industrial output in Germany dropped 1.9% on a monthly basis in June, reaching the lowest level since May 2020, according to the country's statistical authority data released on Thursday.

According to Anadolu Agency, the decline accelerated from May's downwardly revised 0.1% monthly drop, as data from Destatis showed, while the market had forecasted a 0.4% fall for June's figure. The downturn was primarily driven by a significant drop in the manufacture of machinery and equipment, which fell 5.3% month-on-month.

The pharmaceutical industry and the food industry also experienced substantial declines in June, falling 11% and 6.3%, respectively. "By contrast, the growth recorded in energy production (+3.1%) had a positive effect," Destatis mentioned.

In June, production in the industry excluding energy and construction was down 2.8% on a monthly basis. "Within industry, decreases were reported in all three major groups. The production of consumer goods fell by 5.6%, capital goods production by 3.2%, and intermediate goods production by 0.6%. Outside industry, production in construction increased by 0.7%," it noted.

Compared with June 2024, production in the industry excluding energy and construction was down 4.7% in June. On an annual basis, Germany's industrial output declined 3.6% in June.