August 9, 2019

Andrew Campbell 

In nearly a decade, German industrial production recorded its largest annual decrease, highlighting the seriousness of the trade slump in Europe's largest economy.

In June, output fell by 5.2% from the prior year, most since the nation recovered from the Great Recession following the global financial crisis in the late 2009. The figures are the latest in a sequence that point to a rapidly declining outlook, which is also beginning to impact the labor market.

The fall was significantly larger than the economists ' prediction of a decrease of 0.3% in the Wall Street Journal survey.

The German Ministry of Economics said the sector in the country stays in an economic downturn, adding that the decrease in the second quarter was due to the metal, mechanical engineering and automotive industries.

In latest months, uncertainty in trade and slowing development throughout the world has already struck German factories, forcing such industrial giants as Daimler and Continental to reduce their profit prospects. Businesses have announced reductions in work, and unemployment has begun to rise.

Total industrial production dropped by 5.2% compared to June 2018.

Photo:Webshot.