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Economic situation: German industrial production is on the decline

Economic situation: German industrial production is on the decline

Manufacturing in industrial companies is shrinking for the seventh month in a row. But there is also a ray of hope.

German industry once again developed weakly at the end of the year. In December, total production in the manufacturing sector fell by 1.6 percent compared to the previous month, as the Federal Statistical Office announced.

This meant that production in industrial companies shrank for the seventh month in a row. The decline in production in December was also the largest since March. Experts were surprised by the strength of the setback: they had expected an average decline of 0.5 percent.

As the Federal Office also announced, there were particularly sharp declines in production in the chemical industry and the construction industry in December. But production has also fallen in many other sectors of the economy, albeit to a lesser extent. “However, the increase in production in the automotive industry had a positive effect on the overall result,” the statement said. There was an increase of 4 percent month-on-month.

In 2023 as a whole, production was 1.5 percent lower than in the previous year after calendar adjustment. The most significant declines were recorded in energy-intensive industries and energy production.

Source: Stern

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