Brussels – The pace of recovery of industrial production in Germany slows down: in July it registered an increase of 1.2%, say the official figures released today.
The recovery in production observed from May continued into July, albeit at a slower pace, and in the industrial sector it reached almost 90% of the level recorded in the last quarter of 2019, before the start of the pandemic.
ifo Institute: German Industrial Production to Increase Slightly
German industry expects production to increase slightly over the coming months. The relevant IFO indicator rose to plus 15.4 points in August from plus 14.3 points in July. “Little by little, industry – the engine of the German economy – is getting back on track,” says Klaus Wohlrabe, Head of Surveys at ifo.
For the first time in well over a year, manufacturers of machinery and equipment expect to expand production again. The index rose to plus 3 points, having stood at minus 12 points in July. Expectations in metal manufacturing and processing also turned positive for the first time in almost two years, rising from minus 11 points in July to plus 5 points.
Although automotive companies still expect increased production, they are no longer quite as optimistic as in the previous month: the indicator fell slightly from plus 49 points in July to plus 48 points. Furniture manufacturers reported an improved outlook at 19 points, up from 7 points in July, while manufacturers of computers reached 12 points, up from plus 1 point in July.
In the chemical and pharmaceutical industries, the values remained unchanged at 19 and 22 points.
Manufacturers of leather, leather products, and footwear have yet to see recovery. Their production index fell drastically to minus 56 points, having stood at minus 19 points in July. Expectations in the textile and clothing industry have deteriorated again after an interim high in July. The indicator fell to minus 10 points and minus 15 points respectively in August. For beverage producers, the indicator fell from plus 28 points in July to plus 2 points.
