Brandenburg Gate in Berlin, Germany

Germany Industry April 2018

Germany: Industrial production data disappoints again, signaling a weak start to Q2

Industrial production got off to a weak start to the second quarter, continuing the trend of disappointing data coming out of Europe’s biggest economy in recent months. In April, industrial output contracted 1.0% over the prior month in seasonally- and working-day adjusted terms, strongly down from the revised 1.7% expansion logged in March (previously reported: +1.0% month-on-month). The April result, which was in stark contrast to market expectations of a timid 0.3% expansion, is starting to raise questions over the impact of supply-side constraints, as unemployment is at a record-low level, and ongoing geopolitical tensions, most notably with the United States. However, officials are pointing fingers at weak domestic and European demand.

A strong performance in the construction sector, coupled with a rebound in the mining sector, were offset by strong downturns in the manufacturing and energy sectors. Activity in the construction sector expanded a stout 3.3% in April, which was more than double the prior month’s result (March: 1.5% mom), while mining output rebounded to 0.9% growth (March: -1.4% mom). However, activity in the manufacturing sector swung from a 1.6% expansion in March to a 1.7% contraction in April. The same trend was witnessed in the energy sector, where output dropped 1.9% month-on-month compared to a 3.4% expansion in the prior month.

On an annual basis, industrial production expanded 2.0%, which was down from the revised 3.8% increase in March (previously reported: +3.2% year-on-year). Lastly, annual average growth in industrial production came down from the prior month’s revised six-year high of 4.1% (previously reported: +4.0%) to 4.0% in April.

Germany Industrial Production Forecast

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest