German production output down for the fifth time in a row
German companies surprisingly reduced their production in October for the fifth month in a row. Industry, construction and energy suppliers together produced 0.4 percent less than in the previous month, according to the Federal Statistical Office on Thursday. Economists surveyed by the Reuters news agency, however, had expected an increase of 0.2 percent after a drop of 1.3 percent in September.
"The downward trend in industrial production since spring 2023 is continuing at the current margin," explained the Federal Ministry of Economics. Bridge and vacation days are likely to have played a certain role this time. "But even without these special effects, the economic situation is weak." Economists do not expect a rapid turnaround. "Industrial production is likely to continue to fall in the coming months," said Commerzbank chief economist Jörg Krämer. "Companies will have to react to the recent slump in incoming orders after they have processed the orders that were left lying around during coronavirus." The uncertainty caused by the budget crisis is not conducive in this context.
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The decrease in production output in October further continued the downward trend observed in German industries since the spring of 2023. German companies' production output in October followed a downturn for the fifth consecutive month.
Source: www.ntv.de
