Industrial production in Germany decreases more than estimates
Date
11/7/2024 8:21:44 AM
(MENAFN) Germany’s industrial output saw a sharper-than-expected decline in September, as indicated by data from Destatis, the German statistical authority, on Thursday. Industrial production fell by 2.5 percent from the previous month, contrasting with the revised 2.6 percent increase observed in August. This downturn exceeded market predictions, which had anticipated a smaller drop of around 1 percent, underscoring the ongoing volatility within the industrial sector.
The decrease was primarily driven by a substantial drop in automotive industry output, which fell by 7.8 percent month-on-month in September after a significant 15.4 percent increase in August. Destatis noted that these large fluctuations in the automotive sector have had a pronounced effect on Germany’s overall industrial production in recent months. The automotive sector's performance remains pivotal for German industry, given its extensive impact on the broader economy.
Additionally, the chemical industry contributed to the overall decline, with production in this sector contracting by 4.3 percent in September. This downturn within chemicals added to the challenges faced by Germany’s industrial sector, which has struggled with cost pressures and subdued demand. In contrast, machinery and equipment manufacturing offered a bright spot, with a 1.7 percent increase in production, reflecting steady demand for these goods.
On an annual basis, Germany's industrial production declined by 4.6 percent in September, marking a steeper fall than the 3 percent decrease recorded in August. The year-on-year contraction highlights the persistent struggles within the sector, as industrial output continues to grapple with external challenges and internal shifts, impacting the country's economic landscape.
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