MUNICH / WIESBADEN (dpa-AFX) – According to a survey by the Ifo Institute, German industry is facing difficult times after a strong start to the year. A violent slump in production in key areas of industry is expected from March, according to a survey published on Tuesday in Munich by the research institute. A surprisingly positive picture emerged in February. In the manufacturing sector, production increased by 0.3 percent in a monthly comparison, as can be seen from data from the Federal Statistical Office, which was also published in Wiesbaden on Tuesday.
Analysts were surprised by the development in February. They had expected a decline of 0.8 percent in a month-on-month comparison. In addition, the increase in production at the start of the year was even stronger than previously known. According to this, production rose by 3.2 percent in January after initially only reporting a growth of 3.0 percent. The January increase was the strongest since November 2017.
However, the corona pandemic in February had no clear effects on industrial production in Germany, as the Federal Office said. However, the crisis had its first effects on the data collection. The production values of the companies in Rhineland-Palatinate could not be included in February due to the currently restricted service operations in the Rhineland-Palatinate Statistical Office.
A survey by the Ifo Institute showed how strongly industry in the leading European economy will be affected by the corona crisis in the coming months. The researchers’ index of production expectations in March, determined by a survey, fell by 22.8 points to minus 20.8 points. This is the sharpest drop since the poll was launched in 1991.
Even in the global financial crisis, the index only dropped by 13.3 points in November 2008, it said. According to economic researchers, actual production could collapse even more in the coming months than the index value would suggest. “The development is probably still signed because most of the responses were received by the middle of March,” says Klaus Wohlrabe, head of the surveys.
Although, according to the survey results, all industries felt the effects of the Corona crisis in March, car manufacturers were particularly pessimistic about the future. The same applies to the rubber and plastics industry as well as mechanical engineering. In the Corona crisis, companies were hit by a sharp drop in demand and disruption to global supply chains.
The Ifo researchers recognized bright spots in the chemical industry. According to Wohlrabe, this is less affected by the consequences of the corona epidemic. In the food and beverage industry, the index was able to stay in positive territory despite slight declines. / Jkr / ssc / fba
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