It is said with exaggeration about the Czech Republic that, due to the connection of its economy to Germany, it essentially functions as the 17th federal state. In that case, the domestic industry is waiting for further cooling.
The November performance of German industry shows that the development of the German economy has not yet bottomed out. Year-on-year, their industrial production fell by 4.8 percent, and even a comparison with October, when statisticians calculated a drop of 0.7 percent, does not bode well. According to the diary Frankfurter Allgemeine Zeitung (FAZ) this is already the sixth drop in a row.
Analysts polled by Reuters had expected month-on-month growth of 0.2 percent.
“The sharp decline in industrial production again shows that businesses are increasingly reacting to empty order books,” said Commerzbank Chief Economist Jörg Krämer. “The recent global increase in interest rates in response to high inflation is taking its toll,” added the economist quoted by the paper.
Improvement in the near future is not in sight. “Given the current first indicators, such as incoming orders and the business climate, a quick turnaround cannot be expected,” the Federal Ministry of Economy commented on the current development for FAZ.
A number of sectors of the German economy recorded a shortfall – among others the important areas of motor vehicles and their parts (-0.6%) and electrical equipment (-3.3%). Others, however, grew, for example the most energy-intensive branches of industry (+3.1%) and other branches connected to them.
2024-01-09 10:25:42
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