Germany Industrial Production Declines More Than Expected
October 07 2021 - 02:44AM
RTTF2
Germany's industrial output declined more than expected in
August on weak auto production, data from Destatis revealed on
Thursday.
Industrial output fell 4 percent month-on-month in August,
reversing a 1.3 percent rise in July. Economists had forecast a
monthly fall of 0.4 percent.
This was the biggest fall since April 2020, when output was down
18.2 percent.
Compared with February 2020, the month before restrictions were
imposed due to the corona pandemic, production was 9.0 percent
lower in August.
On a yearly basis, industrial production gained 1.7 percent
after rising 6 percent a month ago.
Excluding energy and construction, industrial production was
down 4.7 percent. Producers continue to report about the production
being constrained by a shortage of supply of intermediate
products.
Within industry, the production of capital goods showed a
decrease of 7.8 percent.
The manufacture of motor vehicles, trailers and semi-trailers
plunged 17.5 percent in August and the manufacture of machinery and
equipment was down 6.3 percent on a month earlier.
Consumer goods output dropped 2.6 percent and output of
intermediate goods fell 2.4 percent.
The outlook for the industrial economy as a whole has thus
deteriorated somewhat recently, but remains cautiously optimistic
for the coming months in view of the continued high demand, the
economy ministry. Output in the construction industry remained at a
high level.
With conditions having worsened since February 2020, Germany's
manufacturing problems threaten to keep overall economic activity
well below its pre-pandemic level until next year, Andrew
Kenningham, an economist at Capital Economics, said.
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