December with many frosty days caused losses, especially in the construction industry. Overall, the experts expect a slight slowdown this winter, but no collapse in economic output.
German industry ended a turbulent year on a weak note. In December, production fell by 3.1 percent compared to the previous month, as the Federal Statistical Office announced on Tuesday. Experts had expected a minus of 0.8 percent. For the year as a whole, production was 0.6 percent lower than in the previous year. The industry primarily had to contend with the aftermath of the Ukraine war.
Goods manufacturing fell by 2.1 percent in December because significantly fewer intermediate goods were produced. Energy production fell by 2.3 percent, while construction activity was particularly weak at minus 8 percent. The statistics office blamed the cold weather with many frosty days.
“December shows the expected economic slowdown in the winter half-year in industry,” commented the Federal Ministry of Economics. The energy-intensive sectors in particular have reduced their production. However, the more optimistic business prospects of late, the decreasing material shortages and the well-filled order books indicate that the economic slowdown in winter is likely to be mild. Economists are not ruling out a mild recession. A burglary is no longer feared.
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Source: Stern
