Austria: Industrial production contracts in December
Industrial output dropped 4.0% month-on-month in December, swinging from November’s 2.4% expansion. The contraction was driven by output falling in all sectors, with non-durable and durable consumer goods production suffering the most.
On an annual basis, industrial production increased 3.9% in December, which was notably below November’s 7.8% expansion. More positively, the trend improved, with annual average growth of industrial production coming in at 9.5% in December, which was up from November’s 8.9%. Moreover, industrial output in 2021 recovered markedly from 2020’s pandemic-induced 5.3% contraction.
Analysts at the EIU added:
“The contribution of net exports to GDP growth will be […] held back by the ongoing disruption of global supply chains. Trade will rebound in the second half of next year, when global shortages, in particular of electronic chips required for automotive production, are expected to dissipate. Austria’s manufacturing sector is highly integrated into German supply chains.”