German industrial production unexpectedly declined further in July as trade tensions and waning business confidence continued to weigh on global demand.
Output fell 0.6% from June, missing economist estimates for a slight gain. The numbers point to further deterioration in the outlook for Europe’s largest economy, with production down 4.2% on the year and declining factory orders signaling that no turning point is in sight.
The U.S. and China hit each other with a new round of import tariffs this month, the latest in a spiraling trade drama with grave consequences internationally. While officials from the world’s two largest economies have agreed to reconvene on trade in October, skepticism remains on both sides that substantive progress can be made.
The euro zone has been mired in a manufacturing-led slowdown for more than a year, with Germany on the brink of recession.