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German industrial production in biggest drop for two years

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German industrial production in biggest drop for two years

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German industrial production saw its biggest drop in two years in May, falling 1.8 percent from April, according to the country’s statistics agency Destatis.

It blamed the timing of the May bank holidays and weakness in the construction sector for the fall but said “geopolitical factors” may also have had an effect.

The drop came as a surprise with the majority of economists expecting industrial output to be unchanged.

German economic think tank Ifo said it thought both the Ukraine crisis and the impact on oil prices by the insurgency in Iraq were factors affecting German businesses.