Germany Industry January 2019


Germany: Industrial production drops in January

March 11, 2019

Data on the industrial sector in Germany disappointed again with production dropping 0.8% month-on-month in January, swinging from December’s revised 0.8% expansion (previously reported: +0.4% month-on-month) and contrasting market expectations of a 0.5% increase. January’s contraction was driven by a steep drop in capital goods output and a fall in intermediate goods production. On the other hand, consumer goods production increased at a steady pace and provided a silver lining.

Compared to the same month a year earlier, industrial output fell 3.3% in January, a sharper contraction than December’s upwardly revised 2.7% drop (previously reported: -3.9% year-on-year). Lastly, annual average growth in industrial production eased from 1.1% in December to 0.4% in January.

Commenting on the result, Carsten Brezski, chief Germany economist at ING, noted that “strong revisions of monthly data, tentative signs of domestic orders stabilising and still solid fundamentals suggest that the current volatility is merely a sign that the slump in German industry is reaching a nadir.” He continued to suggest that if reaching a nadir takes too long, the German government could use fiscal stimulus to get the German industry back on its feet.

Germany Industrial Production Forecast

Panelists polled by FocusEconomics expect industrial production to expand 0.6% in 2019, which is unchanged from last month’s forecast. For 2020, the panel sees industrial production increasing 1.6%.

Author:, Economist

Sample Report

Looking for forecasts related to Industry in Germany? Download a sample report now.


Germany Industry Chart

Germany Industry January 2019

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

Germany Economic News

More news

Search form