Weak phase in the german industry continues

Weak phase in the german industry continues

According to the federal statistical office, total production in september declined by 0.6 percent compared to the previous month. Analysts had expected a decline, but had estimated it at an average of only 0.4 percent. Compared to the same month last year, production fell by 4.3 percent.

Weakly developed the good production in the industry. There have been declines in all sectors. On the other hand, energy production and construction activities increased. On a positive note, there was also a slight correction in the previous month’s development. According to new data, total production in august increased by 0.4 instead of 0.3 percent.

Meanwhile, development in the third quarter as a whole was weak. According to the german federal ministry of economics, industrial production was 1.1 percent below the level of the previous quarter.

This makes a technical recession more likely for the german economy as a whole. Economists speak of a downturn of this kind, which differs from a broad-based and long-lasting recession, when economic output shrinks in two quarters. In the second quarter, there was already a slight downturn in economic output. First data on the third quarter will be released by the federal office on 14. Submit november.

"The industrial downturn is broadly distributed across economic sectors," commented the ministry of economics. However, the slight improvement in order intake and business expectations has brightened the outlook for the fourth quarter somewhat. According to data released on wednesday, the industry received significantly more orders in september than in the previous month.

German industry has been burdened for a long time by numerous storms. The most serious factors are the weak global economy and the many political risks. A key factor of uncertainty is the protracted trade dispute between the u.S. And china.