Germany: Industrial output falls in April
Industrial production fell 1.0% month-on-month in April, after expanding 2.2% in March, as the industrial sector opened the second quarter on a sour note. The print reflected contracting output of consumer goods, intermediate goods and capital goods offsetting accelerating energy production growth and expanding construction sector activity.
On an annual basis, industrial production skyrocketed 26.4% in April (March: +4.8% yoy). The print benefited from a favorable base effect as the country was in lockdown in the same month a year prior amid the first wave of the coronavirus. Annual average industrial production fell 3.3% in April, easing from the 7.5% drop recorded in March.
Carsten Brzeski, global head of macro at ING, added:
“The disappointing start to the second quarter suggests that supply chain disruptions, like the blockage of the Suez Canal in April or the ongoing semiconductor delivery problems, have not left German industry unscathed. However despite today’s disappointment, the industrial outlook remains bright. Filled order books and low inventories bode well for industrial activity in the months ahead. […]. All in all, today’s disappointing industrial data underlines that the rebound of the German (and also the eurozone) economy in the second quarter has started with shaky knees. However, after some starting problems, the economic rebound should soon take off strongly.”