ING Group: Latest data shatters Germany's hopes for industry

Jin10 data reported on August 7, analysts at ING Group Carsten Brzeski stated in a report that the optimistic sentiment in the German industry since the beginning of the year does not match the current data. Industrial production fell by 1.9% month-on-month in June, with May's data revised down from an initial rise of 1.2% to a decline of 0.1%. He noted that since the beginning of 2025, as industrial orders began to improve and inventories started to decline, some hopeful signals have emerged, indicating that at least a cyclical Rebound is likely. However, conversely, this optimism seems to be reflected only in the advance shipments of German goods to the United States. Industrial production is still more than 10% lower than pre-pandemic levels. This is bad news, as the new data may lead to a downward revision of the second-quarter GDP, which has already declined by 0.1%.