On August 7, 2019, Germany released figures for June economic output data. These data revealed a continued fall in industrial output, which fell by 1.5% in June and by 1.8% over the three months of quarter two. Many parts of the industrial sector, such as capital goods, intermediate goods, and consumer goods slowed during June. Multiple factors account for the low industrial output numbers. Two of Germany’s major trading partners, the U.S. and China, are currently engaged in an ongoing trade war. This trade war has decreased demand for German exports and has contributed to low industrial output figures for June and quarter two. Germany’s car industry is facing slow growth because of the challenges and costs associated with shifting away from gasoline-powered vehicles. The low industrial output may signal a general economic recession in Germany, the country with the largest GDP in the EU.
