“Contraction of Industrial Production in Germany More than Expected in March: Wall Street Journal”

newspaper saidWall Street JournalToday, Monday, the American News Agency reported that the contraction of industrial production in Germany recorded more than expected in March, driven by a decline in auto production, which indicates weak demand as higher interest rates affected spending.

Data from German statistics office Destatis showed that industrial output, which includes output in manufacturing, energy and construction, fell 3.4% in March compared to the previous month on a seasonally adjusted and calendar basis.

The data may indicate a clear decline in the sector, after last week’s data showed that manufacturing orders collapsed by 10.7% in March, much less than expected, and the manufacturing PMI fell in April more than the level indicating growth.

According to the newspaper, construction production decreased by 4.6%, while production in energy-intensive industrial branches decreased by 3.3% on a monthly basis.

Also read: Inflation in Germany will reach its highest level in 70 years in 2022

In the same context, two weeks ago, German government officials and trade unions reached an agreement on the salaries of more than 2.5 million employees in the public sector, ending a long dispute and preventing the possibility of comprehensive strikes.

The Verdi trade union has pushed for huge salary increases as Germany, like many other countries, struggles with high inflation.