German exports rise as industry edges up in June

German exports and industrial production rose in June, the statistics office Destatis said Friday, while analysts warned that the Mideast war and low Rhine water levels could still weigh on the economy.

Exports increased 0.9 percent to 139.3 billion euros, their highest level since September 2022, Destatis said. Industrial production rose 0.2 percent from the previous month.

Destatis said production rose fastest in the automotive and transport industries, while exports to European Union member states were strongest.

ING bank economist Carsten Brzeski said German industry had shown “surprising resilience” despite the Mideast war raising energy prices. He said the short-term outlook depended heavily on energy prices, the war and the current heatwave.

Industrial orders, a measure of future business activity, rose in June much faster than expected, Destatis said Thursday. Business sentiment also rose in July for a third month, according to the Ifo institute.

But the Rhine has reached record-low depths at a choke point near Kaub in western Germany during a hot summer with low rainfall. The low water is raising freight costs on a river that normally carries about 80 percent of Germany's inland waterway traffic.