German industrial production fell again in April after a strong previous month.

German industry produces less - setback in the pharmaceutical sector
Manufacturing production declined by 1.4 percent month-on-month, the Federal Statistical Office (Destatis) announced in Wiesbaden on Friday. In March, anticipatory effects related to announced US tariffs had driven production.
However, production growth in March was weaker than previously estimated. The Federal Office revised the increase to only 2.3 percent from the previous 3.0 percent.
Analysts had expected weaker production for April. However, they had only expected a decline of 1.0 percent on average. The statistics office also reported a slowdown year-on-year. In this analysis, production fell by 1.8 percent in April.
A sharp decline in production in the pharmaceutical industry also contributed to the negative development, the statement said. The Federal Office reported a 17.7 percent month-on-month decline for April. In contrast, March saw a very strong increase.
"The recent strong fluctuations in industrial production in some sectors of the economy are likely also an expression of trade policy uncertainties resulting from US tariff policy," said a statement from the Federal Ministry of Economics.
Recently, however, there have also been signs of improved development in industrial companies, thus indicating an end to the weak phase. In April, industrial companies recorded more orders for the second month in a row, and economists spoke of the first signs of a turnaround.
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