German Industrial Production in August Accelerated Strongest in Six Years

German industrial production surged in August at the strongest rate in just over six years, supported by a jump in the production of investment goods, a report from the Ministry of Economy and Energy revealed on Monday.

Industrial production rose by 2.6 percent in August compared to the previous month when it was nearly stagnant, the ministry reported. The August jump is the strongest since July 2011, according to ministry data.

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The production of investment goods saw the strongest increase, rising by 4.8 percent, with the ministry highlighting a 10.8 percent jump in vehicle production, likely linked to the scheduling of summer vacations, they speculate.

A lower level of production compared to July was only noted in the construction sector, down by 1.2 percent.

Industrial production has accelerated again since the beginning of the year, the ministry states, adding that “a favorable business climate and a positive trend in orders suggest the continuation of good industrial conjuncture.”

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At the end of last week, the ministry reported a 3.6 percent jump in new industrial orders in August, the strongest since the end of last year. The engine of growth was foreign demand, which increased by 4.3 percent on a monthly basis, driven by a 7.7 percent jump in orders from countries outside the eurozone.