The economy German industrial production falls - car sector remains weak
Industry in Germany is still in crisis. Companies in Germany surprisingly cut back their production once again in October - especially in the crisis-ridden automotive industry.
06.12.2024, 09:49
06.12.2024, 09:50
SDA
According to the Federal Statistical Office in Wiesbaden, production in industry, the energy sector and construction fell by 1.0 percent compared to September, adjusted for price. Analysts had expected an average increase of 1.0 percent. In a year-on-year comparison, production fell unexpectedly sharply by 4.5 percent.
However, the dip in production in the previous month of September was somewhat weaker than previously reported. The Federal Office revised the month-on-month decline to 2.0 percent from 2.5 percent previously.
Further fall in car production
While production in construction stagnated in October, it fell by almost nine percent in energy production, adjusted for seasonal and calendar effects. Industrial production shrank by 0.3 percent. A 1.9 percent drop in production in the ailing automotive industry had a negative impact.
Commerzbank chief economist Jörg Krämer spoke of a weak start to the fourth quarter. "A rapid improvement is unlikely in view of the low level of incoming orders and the weakness of the Ifo business climate. The German economy is likely to stagnate at best in the winter half-year."
Energy-intensive industry under pressure
In energy-intensive industries, which include the chemical sector, production fell by 0.9% in October compared to September, adjusted for seasonal and calendar effects.
Industrial production is suffering from the weak order intake of the past two years, wrote VP Chief Economist Thomas Gitzel. "At the same time, the overall weak output is also having an impact on energy production". Energy-intensive companies still appear to be suffering in particular.
