German industrial production rose by a sharp 1.2% in May but only after a 1.6% plunge in April which followed a 2.3% surge in March.

On the pricing front, the net percent raising their average selling prices rose to 29% last month from 25% in May. It had grown to 32% in February. The percentage planning to raise prices increased to 32% in June, up from a 24% low in July of 2024.

Worker compensation rebounded as a net 33% of respondents lifted compensation during the last three months versus 26% in the last survey. Compensation gains peaked at 50% of firms in January 2022. A lessened net 19% of firms are making plans to raise worker compensation in the next three months, below November’s high of 28%.