Germany Industry April 2019

Germany

Germany: German industrial sector not out of the woods yet

June 7, 2019

Industrial production fell 1.9% month-in-month in April in seasonally- and calendar-adjusted terms, swinging from March’s 0.5% increase. April’s drop came on the back of broad-based contractions in output of consumer, capital and intermediate goods. On a sector level, production in the energy sector was also down noticeably; the construction sector, however, provided a small silver lining as production increased marginally.

Compared to April 2018, output dropped 1.8%, down from March’s 0.9% contraction. Lastly, annual average industrial production decreased 0.5% in April, down from the 0.2% drop in March.

Commenting on the data release, Carsten Brzeski, stated that “this is a horrible start to the second quarter for German industry [but] the past has often shown that a single month is clearly not a good illustration of German industry or the entire economy.” At the same time, however, Brzeski argued that the latest data justifies “the European Central Bank’s new dovishness. It now needs even stronger domestic demand and a bounceback in May and June to avoid a return to recessionary territory.”

Panelists polled by FocusEconomics expect industrial production to expand 0.4% in 2019, which is unchanged from last month’s forecast. For 2020, the panel sees industrial production increasing 1.4%.


Author:, Economist

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Germany Industry Chart


Germany Industry April 2019

Note: Month-on-month changes of seasonally adjusted industrial production and annual growth rate in %.
Source: Federal Statistics Office (Destatis).


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