economic situation
Industrial production falls unexpectedly sharply
A setback in car production is causing German industrial production to fall significantly. The late summer surge may have been just a flash in the pan.
Production in German industry has fallen surprisingly sharply, also due to weak development among car manufacturers. In September, total production fell by 2.5 percent month-on-month, as the Federal Statistical Office (Destatis) in Wiesbaden announced. Analysts on average had expected a decline, but only by 1.0 percent. Year-on-year, the decline in production deepened, from a revised 3.0 percent in August to 4.6 percent.
In addition, production in the previous month of August increased more slowly than previously known. The Federal Office revised the month-on-month increase to 2.6 percent from the previous 2.9 percent. Even in the three-month comparison, which is less prone to fluctuations, production fell from July to September by 1.9 percent compared to the previous three months.
According to the Federal Office, the setback in September can be attributed, among other things, to weaker development in the auto industry. Here Destatis reported a decline in production of 7.8 percent compared to the previous month. There was also a setback in the chemical industry. Production here fell by 4.3 percent. However, production in mechanical engineering developed positively with an increase of 1.7 percent.
dpa
Source: Stern
