Schweißer symbolisiert die Entwicklung der Produktion im produzierenden Gewerbe

© Tremblay

According to the Federal Statistical Office,1 output in the goods-producing sector rose by 2.8% in October compared with the preceding month.2 Industrial output increased by 3.2%, while output in the construction sector grew by 1.2%.

Since the beginning of the year, industrial output has been impacted by supply bottlenecks affecting important intermediate products and raw materials. As a consequence, it dropped sharply in some parts during the summer months. The contrary trend in October gives grounds for optimism in the tense economic situation, although the production decline since the beginning of the year has not yet been compensated for.

The strong rise in the important areas of vehicles and vehicle parts (+12.6%) and in mechanical engineering (+5.0%) is encouraging. Both sectors of industry have been particularly badly affected by the shortages, especially of semiconductors, for several months. In spite of the sharp increase, however, motor vehicle production is still well below the pre-crisis level.

The future outlook for the industrial sector remains subdued, also in view of current indicators of sentiment. Supply bottlenecks are likely to continue to impact on industrial activity for several months to come.

[1] Press release by the Federal Statistical Office of 7 December 2021.
[2] All figures are based on provisional data and have been adjusted for price, calendar day and seasonal factors (X13 JDemetra+ procedure).