German industrial production drops unexpectedly in June, exports off more than forecast

Economic Indicators Associated Press

German industrial production unexpectedly dropped in June as a result of weaker performances by the construction and machinery sectors and calendar effects caused by public holidays. Exports also dropped more than expected.

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The Economy Ministry said Friday that production in Europe's biggest economy was down 1.4 percent compared with the previous month. Economists had expected a 0.3 percent gain.

In a separate report, the Federal Statistical Office said that exports dropped 1 percent — worse than the forecast 0.3 percent decline — while imports were 0.5 percent lower.

Germany's trade surplus slipped to 22 billion euros ($24 billion) from 22.8 billion euros in May.

UniCredit economist Andreas Rees described the drop in production as a "statistical fluke" rather than providing any evidence of an impact from slowing growth in China.