Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

German industrial production escalated in July after witnessing a drop for three consecutive months due to supply chain issues, showed the official data released on Tuesday.


Overall production increased by 1pc from the prior month and 5.7pc from the prior-year period, according to data from the German Economy Ministry. German industrial output in July is down by 5.5pc from February 2020, the month before the lockdown measures due to the COVID-19 pandemic. In June, industrial production had dropped 1pc from the prior month.


The production of cars and car parts was up by 1.9pc, and machinery grew by 6.9pc in July 2021. Supply chain issues of semiconductors affected the production in the earlier months. The semiconductor supply crunch will continue for some days, though the industrial output in July paints an optimistic picture.


Germany’s economy rose by 1.6pc between April and June from the previous quarter. The second quarter saw coronavirus infections rising and declining again. During the same period, the economy suffered from supply chain challenges caused by the disruption of ships blocking the Suez Canal that lead to delays in production due to the delivery of microchips.


Ministry of Economy expects better performance in July-Sep quarter. The data indicates favourable demand for German goods. Factory orders rose for the second consecutive month by 3.4pc in July. 

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