German industrial output falls more than expected in December
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Loading... - Oscar Hayes
- 09 Feb 2023
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German industrial production fell more than expected in December, driven by a plunge in output from energy-intensive sectors, the federal statistics office said on Tuesday.
Industrial production decreased by 3.1% on the previous month, the office said. In a Reuters poll, analysts had pointed to a drop of 0.7% for the month.
The drop was more severe in energy-intensive industrial sectors, where production decreased by 6.1% in December compared with November.
This illustrates how severely the energy crisis is hurting industry, said Carsten Brzeski, global head of macro at ING.
"The former growth engine of the German economy is stuttering and improvement is not really in sight," Brzeski said.
Germany, hardest hit by the de-facto end of Russian gas supplies to Western Europe, asked households, businesses and industry to try to meet a nationwide 20% gas savings target to help avoid a gas shortage over winter.
In December, gas consumption in industry was down 15.4% compared to the corresponding 2018-2021 average, according to the federal network regulator. Read More…
