2023-11-07 10:48:38
Industry in Germany continues to develop weakly. In September, total production fell by 1.4 percent on a monthly basis, as the Federal Statistical Office announced on Tuesday in Wiesbaden. It is the fourth monthly decline in a row. Analysts on average had only expected a decline of 0.1 percent. In the entire third quarter, production fell by 2.1 percent compared to the previous quarter.
“The downward trend that has been going on since the summer continues,” the Federal Ministry of Economics commented on the figures. However, more stable incoming orders and sentiment indicators pointed to a bottoming out in the third quarter and an upturn at the turn of the year.
“Hopes are focused on the new year”
In detail, developments in September were consistently weak. With the exception of construction production, which stagnated, all areas recorded declines. Manufacturing of goods in industry fell by 1.7 percent. Energy production fell to the same extent.
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Bank economists were disillusioned by the development. “Again a disappointment from the industry,” summed up Jens-Oliver Niklasch from Landesbank Baden-Württemberg. Production can hardly make it into the black from month to month. Weak domestic demand and uncertain global developments continued to weigh on performance. Things are unlikely to get any better in the short term: “Hopes are focused on the new year.”
Commerzbank chief economist Jörg Krämer said that the recent weak order situation is now reflected in a decline in industrial production. “This should continue in the coming months, including in the construction industry, where more and more projects have been canceled recently.” Added to this is the ongoing weakness in retail. “All in all, the German economy is likely to contract again somewhat in the fourth quarter.”
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