German industry had a lively start to the new year. But in March, production falls significantly. But there is a small plus over the quarter – a sign of recovery?
Surprisingly, German industry produced significantly less in March. Compared to the previous month, the total production fell by 3.4 percent, as the Federal Statistical Office announced on Monday in Wiesbaden.
Analysts had expected a setback, but estimated it at only 1.5 percent. However, because production increased in January and February, there is clear growth for the entire first quarter compared to the final quarter of 2022.
In March, developments were weak except for the energy sector. Both the production of goods in industry and activity in the construction industry fell significantly. In contrast, emissions from the energy sector rose slightly. Significantly fewer intermediate and capital goods were produced within industry. Consumer goods production was slightly below stagnation.
“After production in industry developed vigorously at the beginning of the year, there was an unexpectedly significant decline in March,” commented the Federal Ministry of Economics. In the first quarter, however, there was an increase compared to the previous quarter. “The mood in companies has recently improved further, which speaks for an economic recovery in the further course of 2023.”
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Source: Stern
