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Germany just got some shockingly bad industrial production news

Aug 7, 2015, 11:59 IST

Supporters react after Germany conceded a goal during its Group B Euro 2012 soccer match against Denmark, at the Fan Mile in Berlin, June 17, 2012.REUTERS/Thomas Peter

German industrial production tanked in June, against expectations. June's figures showed the worst month-on-month performance for Europe's largest industrial base since August last year.

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Production fell 1.4% from May, against the 0.4% rise analysts had expected.

That leaves production on the year up just 0.6%, a pretty meagre expansion, compared to the 2.2% increase that was expected.

The particularly strange element of the decline is that June factory orders numbers released on Thursday for Germany were extremely strong - the best monthly rise in over a year, in fact.

The two figures aren't mutually exclusive - factory orders could be followed up in the months ahead by higher production. But it is a bit harder to say which way a sector is going when nothing points in the same direction.

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