BERLIN, July 5 (Xinhua) -- Germany's industrial production decreased by 2.5 percent in May compared to the previous month, as reported by the country's Federal Statistical Office (Destatis) on Friday.
It marked the steepest decline in over a year. According to Destatis, most sectors of Europe's largest economy showed downward trends in industrial production.
In May, Germany's crucial automotive industry experienced a notable decline in production, with figures dropping by 5.2 percent, following a 4.5-percent increase in April, according to the report.
"Production is expected to stabilize as global trade recovers and demand for industrial products gradually increases," the Ministry for Economic Affairs and Climate Action said on Friday. The ministry highlighted that recent trends in the manufacturing sector indicate a cautious outlook for Germany's industrial economy in the coming months.
The decrease in production figures coincides with a decline in new orders for Germany's manufacturing sector. In May, orders fell by 1.6 percent month-on-month, marking the fifth consecutive decline.
A survey conducted by Germany's KfW Research revealed that business sentiment among small and medium-sized enterprises (SMEs) in the country is deteriorating. The corresponding index for June fell for the second consecutive time. Additionally, large enterprises have also become more pessimistic again.
"The hoped-for economic recovery remains very uncertain," said Fritzi Koehler-Geib, chief economist of KfW, emphasizing that there are no signs of sentiment rebounding.
