German industrial output seems to have grown slightly in July

German industrial output is expected to have grown slightly in July. After the solid beginning to 2016, the nation’s industrial output was muted in the second quarter, falling 1 percent in the quarter. However, the industrial production is expected to have increased 0.2 percent in sequential terms in July, said Societe Generale in a research report. The rise is expected to have been driven mainly by a small increase in construction and manufacturing production.

Construction might continue to perform soundly, owing to the increasing housing demand and low interest rates. This is expected to lead to a strong growth in industrial output in the third quarter, whereas survey data might imply certain weakening in the fourth quarter, added Societe Generale. Therefore, any Brexit impacts are expected to emerge only in the fourth quarter at the earlier. Overall, the German economy is likely to remain resilient, given the solid domestic fundamentals, according to Societe Generale.