- Wednesday, October 16, 2024
Germany's industrial production has seen a sixth-straight month of decline, indicating a sluggish period for the manufacturing base of Europe's largest economy. In November, output slumped by 0.7%, falling short of expectations that it would remain stagnant compared to the previous month. This data was published by the German statistics office Destatis.
According to economists surveyed by The Wall Street Journal, there was an anticipated zero growth, making the actual decline disappointing. The decline follows the report from Monday that showed new factory orders only rose by 0.3% in November.
Within different sectors, the production of capital goods experienced a 0.7% decline, while the production of consumer goods saw a minor tick down at 0.1%. Intermediate goods weakened by 0.5%. However, in energy-intensive industries, production increased by 3.1% on a monthly basis. On the other hand, output in industries excluding energy and construction declined by 0.5%.
The persistent decline indicates that German industry was still in recession during the final quarter of 2023, as noted by Melanie Debono, senior Europe economist at Pantheon Macroeconomics. Destatis also reported that there was a 1.9% decrease in production during the period from September to November 2023, compared to the previous three months.
While the outlook remains bleak, forward-looking survey indicators suggest a potential trough in the fall of demand, according to Debono. Germany's economy ministry echoed this sentiment in a statement, stating that they expect industrial production to recover as the year progresses. They are hopeful for a domestic economic recovery and increased exports.
It is clear that Germany's industrial sector continues to face challenges and will require time to rebound.
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