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Free Malaysia Today
6 days ago
- Business
- Free Malaysia Today
Germany's industrial output hits its lowest since 2020, exports exceed forecasts
Germany's export-oriented economy is expected to be badly affected by US tariffs. (EPA Images pic) BERLIN : Germany's industrial output fell in June to its lowest level since the pandemic in 2020, while exports rose more than expected, official data showed today. Industrial output dropped 1.9% month-on-month, the federal statistics office said, exceeding the 0.5% decline forecast in a Reuters poll of analysts. 'Production reached its lowest point since May 2020, when the pandemic triggered a sharp contraction,' the office added. A three-month comparison revealed a 1% decline in production in the second quarter, marking a return to levels last seen in the first half of 2020. The statistics office also revised the data for May to a 0.1% drop from the previous month, compared with a provisional figure of a 1.2% increase. The office attributed the revision to corrections from establishments in the automotive sector. Separately, German industrial orders fell unexpectedly by 1% in June, marking the second consecutive month of decline due to reduced foreign demand, data released yesterday showed. Exports rise German exports rose 0.8% month-on-month in June, surpassing the 0.5% increase predicted by analysts. 'Exports to EU countries increased by 2.4%, while shipments to non-EU nations fell 1.2%,' the statistics office said. Exports to the US dropped 2.1% compared with May, marking a third consecutive monthly decline and reaching their lowest value since February 2022. Germany's export-oriented economy is expected to be badly affected by US tariffs. The US was Germany's biggest trading partner in 2024 with two-way goods trade totalling €253 billion. Germany's foreign trade surplus narrowed to €14.9 billion (US$17.39 billion) in June, down from €18.5 billion in May and €20.3 billion in June of 2024.
Reuters
6 days ago
- Business
- Reuters
Germany's industrial output hits lowest since 2020, exports exceed forecasts
Aug 7 (Reuters) - Germany's industrial output fell in June to its lowest level since the pandemic in 2020, while exports rose more than expected, official data showed on Thursday. Industrial output dropped 1.9% month-on-month, the federal statistics office said, exceeding the 0.5% decline forecast in a Reuters poll of analysts. Production reached its lowest point since May 2020, when the pandemic triggered a sharp contraction, the office added. A three-month comparison revealed a 1.0% decline in production in the second quarter, marking a return to levels last seen in the first half of 2020. The statistics office also revised the data for May to a 0.1% drop from the previous month, compared with a provisional figure of a 1.2% increase. The office attributed the revision to corrections from establishments in the automotive sector. Separately, German industrial orders fell unexpectedly by 1% in June, marking the second consecutive month of decline due to reduced foreign demand, data released on Wednesday showed. German exports rose 0.8% month-on-month in June, surpassing the 0.5% increase predicted by analysts. Exports to European Union countries increased by 2.4%, while shipments to non-EU nations fell 1.2%, the statistics office said. Exports to the United States dropped 2.1% compared with May, marking a third consecutive monthly decline and reaching their lowest value since February 2022. Germany's export-oriented economy is expected to be badly affected by U.S. tariffs. The U.S. was Germany's biggest trading partner in 2024 with two-way goods trade totaling 253 billion euros. Germany's foreign trade surplus narrowed to 14.9 billion euros ($17.39 billion) in June, down from 18.5 billion euros in May and 20.3 billion euros in June of 2024. ($1 = 0.8566 euros)
Daily Mail
05-08-2025
- Business
- Daily Mail
Tariffs are making these 5 things more expensive in Canada
The trade war between the U.S. and Canada has intensified, with President Donald Trump raising tariffs on Canadian imports from 25% to 35%. While many goods are shielded by an existing North American trade agreement, several key products are being significantly impacted. This latest move follows Canada's earlier imposition of its own counter-tariffs on tens of billions of dollars worth of American products. Experts anticipate that this ongoing dispute will lead to a continued rise in prices for everyday consumer goods in Canada. Fridges and washing machines Tariffs are making household appliances, such as fridges and washing machines more expensive for Canadian consumers. This is due to a combination of Canada's counter-tariffs on U.S. made appliances and the rising cost of American sheet steel, which has been impacted by U.S. tariffs on imported metals. According to Statistics Canada, the price of refrigerators and freezers has increased by an average of 2%, while dishwashing and laundry appliances are up 4.5% compared to last year. While consumers may find ways to save by purchasing non-U.S. products, experts say that "pre-tariff" sales are a clear sign that prices for these items will continue to climb. New and used cars The automotive sector has been hit particularly hard by the ongoing trade dispute between the U.S. and Canada, largely due to the intricate nature of their manufacturing supply chains. A vehicle's components can cross the border up to eight times before final assembly, leaving the industry vulnerable to new tariffs. A 25% tariff on cars and trucks not built in the U.S., along with Canada's reciprocal tariffs and broader metals tariffs, has resulted in a price surge for new vehicles, which were up over 5% in June compared to last year. This has also caused a price increase in the used car market, as experts believe consumers are keeping their vehicles longer to avoid purchasing new ones. Peanut butter, canned soup and other groceries Canada's counter-tariffs are noticeably impacting grocery prices, despite a temporary six-month exemption on some products. Loblaw, the country's largest grocer, is now labeling nearly 7,500 items with a "T" to indicate tariff-related price hikes, and its CEO reports that these items have seen a 20% decline in sales. This includes staples like tomato ketchup, peanut butter, jam, turkey, pasta, and oranges. Experts note that prices for fruit juice have increased by 7.5% and canned soups by 8% due to tariffs on American citrus and steel, as Canada imports most of its food packaging from the U.S. Clothing and footwear In an unexpected reversal of a 20-year trend, clothing and footwear prices in Canada rose by 2% year-over-year in June. According to a Statistics Canada analyst, this price increase is less a result of Canada's counter-tariffs on U.S. goods and more a symptom of the broader global trade war. U.S. tariffs on major Asian manufacturing hubs have created supply chain uncertainty, ultimately driving up costs for the Canadian apparel industry and, in turn, for consumers. Housing and remodeling costs The Canadian home building industry is struggling with the rising cost of materials due to tariffs, a factor that is now delaying project deadlines. A residential developer in Ontario noted that while the total cost increase is hard to calculate, the uncertainty has forced her company to seek out local suppliers.
South China Morning Post
14-07-2025
- Automotive
- South China Morning Post
Britain offers US$5,000 discounts on electric cars to boost demand
The British government will offer discounts worth up to £3,750 (US$5,037.00) to buyers of electric cars priced at £37,000 or below, it said on Monday, under a new scheme that aims to better align consumer demand with net zero emissions targets. Advertisement The government will spend £650 million on the discount scheme, which will be available from Wednesday to consumers once carmakers sign up for the scheme. As part of a wider goal of achieving net-zero greenhouse gas emissions by 2050, Britain wants to phase out sales of new petrol and diesel cars by 2030. But demand for electric vehicles (EVs) has stalled, with consumers citing high upfront costs as the main barrier. 'This EV grant will not only allow people to keep more of their hard-earned money – it'll help our automotive sector seize one of the biggest opportunities of the 21st century,' Transport Secretary Heidi Alexander said. The scheme follows calls from the automotive industry for EV incentives, as carmakers effectively need to sell more EVs each year to meet emissions targets or pay fines. British Transport Secretary Heidi Alexander. Photo: Reuters Britain scrapped a previous incentive scheme for electric vehicle purchases in 2022 as the then-Conservative government shifted focus to spending on expanding the public charging network.
