Brandenburg Gate in Berlin, Germany

Germany Industrial production September 2021

Germany: Industrial output falls at a softer pace in September

Industrial production dropped 1.1% month-on-month in September in seasonally- and calendar-adjusted terms, following August’s 3.5% contraction. The print reflected softer contractions in capital and intermediate goods production, and a return to growth in the production of consumer goods. Activity in the construction sector also rebounded, while energy output slowed.

On an annual basis, industrial production fell 1.0% in September, after expanding 2.2% in August. Annual average industrial production rose from 2.6% in August to 3.9% in September.

Carsten Brzeski, global head of macro at ING, added:

“The only upside of yet another drop in German industrial production is that it can hardly get worse. […]  Supply chain frictions are not only leaving their mark on actual production but have started to spread and to undermine production prospects.”

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