German industry has found itself in difficult waters. Now the numbers from August are pointing upwards again – and one sector of industry in crisis stands out.
Production in German industry has risen surprisingly sharply thanks to strong developments among car manufacturers. In August, total production increased by 2.9 percent month-on-month, as the Federal Statistical Office in Wiesbaden announced. Analysts on average had expected an increase, but only by 0.8 percent. Year-on-year, the decline in production weakened significantly, from a revised 5.6 percent in July to just 2.7 percent.
However, production in the previous month of July fell more sharply than previously known. The Federal Office revised the month-on-month decline down to 2.9 percent, from the previous 2.4 percent.
According to the Federal Office, the stronger August production is due in particular to better developments in the automotive industry. In the production of motor vehicles and motor vehicle parts, Destatis reported an increase of 19.3 percent compared to the previous month. In July, production in the auto industry had fallen significantly and had a negative impact on overall production in the industrial sector.
However, the situation in German industry remains critical: Order intake in German industrial companies fell unexpectedly sharply in August, which put a damper on hopes of an economic recovery in the second half of the year. “The increased industrial production in August is not yet a reason to give the all-clear,” said DIHK economic expert Jupp Zenzen. The three-month comparison, which is considered less susceptible to fluctuations, continues to point downwards. Zenzen said that there could be no good prospects for the industry because of the slump in orders.
Source: Stern
