Germany: Industrial output drops in November
January 7, 2022
Industrial output fell 0.2% month-on-month in November on seasonally- and calendar-adjusted terms, swinging from the 2.4% increase recorded in the prior month. The print came on the back of a drop in capital goods production, chiefly due to a contraction in machinery and equipment output, and a fall in energy and construction output.
On an annual basis, industrial output fell 2.4% in November, down from the 0.9% decrease recorded in October. Annual average output was stable at October’s 4.2% in November.
Carsten Brzeski, global head of macro at ING, added:
“Supply chain frictions are keeping German industry in a stranglehold. Only exports are sending some glimmers of hope. However, without production, the export revival will also be short-lived. […] With the fourth and fifth wave of the pandemic and Omicron putting the Asian zero-Covid-19 strategies to the test, things for German industry will first get worse before they get structurally and sustainably better.”