German industrial production collapses. The future is not rosy
Bad news from German industry. Industrial production in Germany fell sharply by 3.1% month-on-month in December 2022, following an upwardly revised 0.4% increase in November and worse than market expectations of a 0.7% decline. This marked the steepest decline in industrial production since March 2022. Production decreased for intermediate goods (-5.8%), especially the chemical industry (-11.2%) and production remained unchanged for capital goods while it increased for consumer goods (0.3%).
Meanwhile, power generation fell by 2.3% while construction fell by 8%. In addition, production in energy-intensive industrial branches decreased by 6.1%, due to high energy prices and the negative development of the chemical industry. Compared to December 2021, industrial production decreased by 3.9%. Considering the full year of 2022, industrial production was 0.6% lower than in 2021 and 5% lower than the pre-pandemic year of 2019. Here are the related graphs
As to be expected, therefore, no recovery for German industrial production, still crushed by excessive energy prices: in fact, the price of gas, although it has fallen compared to the follies of last August, is in any case double compared to what it was before 2021 Furthermore, the higher interest rate policy affects both the investment consumption decisions of individuals and companies. So an immediate future rebound is not to be expected.
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The article German industrial production collapses. The future is not rosy comes from Scenari Economici .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/crolla-la-produzione-industriale-tedesca-il-futuro-non-e-roseo/ on Tue, 07 Feb 2023 17:13:18 +0000.