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A factory in Germany: German companies recently had to reduce production for six months in a row. © Andreas Arnold / dpa
German companies surprisingly had to reduce their production in November last year – for the sixth time in a row. But the Federal Ministry of Economics sees improvement coming.
Berlin – The negative series continues: German companies surprisingly reduced their production for the sixth month in a row in November. Industry, construction and energy suppliers together produced 0.7 percent less than in the previous month, as the Federal Statistical Office announced on Tuesday. Economists surveyed by the Reuters news agency, however, had expected an increase of 0.2 percent, after a decline of 0.3 percent in October.
“The renewed significant decline in industrial production shows that companies are reacting more and more to the emptied order books,” said Commerzbank chief economist Jörg Krämer. “The recent global interest rate increases in response to high inflation are taking their toll.”
Federal Ministry of Economics: Recovery is approaching
There is no immediate improvement in sight. “A quick turnaround in the industrial economy cannot be expected given current leading indicators such as incoming orders and business climate,” commented the Federal Ministry of Economics on the current development. New industrial business fell 4.5 percent lower from September to November than in the previous three months. The ministry hopes that there will be signs of recovery as the year progresses, given the expected domestic economic recovery and increasing exports.
The export-dependent industry alone produced 0.5 percent less in November than in the previous month. The production of capital goods such as machines and vehicles fell particularly significantly by 0.7 percent. The decline was 0.5 percent for intermediate goods and 0.1 percent for consumer goods.
This time, energy production grew by 3.9 percent. Construction production, on the other hand, shrank by 2.9 percent. The construction industry is suffering from high interest costs, which are causing reluctance among private and professional investors. (reuters, lf)
2024-01-09 22:13:23
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