German manufacturing continues to decline, albeit a little less. They are happy…
As expected there are other negative data on industrial production in Germany. Paradoxically, some will even give a positive view of it, which would make us smile, if we could afford it.
Industrial production in Germany fell 0.2% month-on-month in August 2023, compared to market forecasts of a 0.1% decline and following a downwardly revised 0.6% decline in the previous month.
It was the fifth decline so far this year, against a backdrop of weakness in energy production (-6.6%), construction (-2.4%) and machinery and equipment manufacturing (-2.3 %).
On the contrary, the automotive industry grew by 7.6%, recovering from the 9.4% collapse in July, an almost obvious rebound, given that, in any case, something needs to be produced for the autumn.
In industry, the production of consumer goods fell by 1.4%, while that of capital and intermediate goods increased by 1.3% and 0.5% respectively . Excluding energy and construction, industrial production fell 0.7%. On an annual basis, industrial production fell 2.0% in August, following a 1.7% contraction in July.
Here is the graph:
In Germany they almost breathe a sigh of relief because the drop was only 0.2% compared to the previous month. However, there is nothing to be happy about, because the decline on an annual basis is notable and there is no serious rebound. The sharply declining production of consumer goods indicates that the economy is struggling, investment goods are the residue due to green efforts.
So celebrations in Germany because it only dropped by 0.2%. Pyrrhus said: " If we win just one more victory over the Romans, we will be completely ruined." Exactly as German economists might say today.
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The article German manufacturing continues to decline, albeit a little less. Happy with them… it comes from Scenari Economici .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/cala-ancora-la-manifattura-tedesca-anche-se-un-po-di-meno-contenti-loro/ on Mon, 09 Oct 2023 09:09:26 +0000.