WIESBADEN (dpa-AFX) – Industry in Germany produced slightly less at the start of the fourth quarter. From September to October, total production fell by 0.1%, as announced by the Federal Statistical Office in Wiesbaden on Wednesday. Bank economists had expected a more significant decline of 0.6 percent on average. Development in September was better than previously known: instead of a 0.6 percent increase, new data show a 1.1 percent increase. Compared to the same month last year, production stagnated in October.
However, the Federal Ministry of Economy commented on the figures cautiously: production had started weakly in the fourth quarter and the outlook remained cloudy. The industry has long suffered from the economic fallout of the war in Ukraine and ongoing problems in international trade in goods.
Bank experts were less skeptical. Thomas Gitzel, chief economist at VP Bank, spoke of a hopeful sign that the feared slump in the industry is less than feared. Jens-Oliver Niklasch of Landesbank Baden-Württemberg commented that the decline in many leading indicators was not understood by the real economy. “For now, therefore, the situation is better than the weather.”
Overall production was supported by the construction sector, which grew strongly by 4.2% month-on-month. The Ministry of Economic Affairs cited mild weather as a possible reason. By contrast, manufacturing of goods in industry fell slightly at 0.4 percent. Energy production dropped significantly by 7.6 percent. According to the ministry, this could be due to energy saving efforts. Developments in industry were mixed: more capital goods were manufactured, but fewer intermediate and consumer goods./bgf/jkr/jha/
AXC0092 2022-12-07/09:42
Copyright dpa-AFX business news GmbH. All rights reserved. Redistribution, republication or permanent storage without the express prior consent of dpa-AFX is not permitted.