German industry suffered worst annual drop in a decade in June

Bloomberg

German industrial production registered its biggest annual decline in almost a decade, highlighting the severity of the trade-inflicted manufacturing slump in Europe’s largest
economy.
Output was down 5.2% in June from the previous year, the most since late 2009, when the country was recovering from the Great Recession that followed the global financial crisis. The numbers are the latest in a series pointing to a quickly deteriorating outlook that’s also starting to affect the labour market.
The US and China have stepped up their fight over import tariffs in recent days, bringing the world closer to fully fledged trade war that will also have grave consequences for Germany and the 19-nation euro area.
Trade uncertainty and slowing global growth have already hit German factories in recent months and forced industrial giants including Daimler and Continental to lower their profit outlook. Companies have announced job cuts, and unemployment started to increase.
Industrial production dropped 1.5% in June from the previous month, driven by an even steeper decline in manufacturing. The sector “remains mired in a downturn,” the Economy Ministry said in a statement on Wednesday, adding that a disappointing performance in the second quarter was primarily due to weakness in metal, machinery and car production.