Schweißer symbolisiert die Entwicklung der Produktion im produzierenden Gewerbe

© Tremblay

According to the Federal Statistical Office [1], output in the goods-producing sector increased slightly, rising by +0.2% in May as compared to the previous month [2]. The industrial and construction sectors boosted their output by 0.6% and 0.4% respectively, whilst the energy sector cut its output by 5.8%.

Economic output varied in the different sectors of industry: Output rose in the important sectors of cars and car parts (+5.9% and +1,4%) and metal products (+5.0%). Other branches of industry like pharmaceutical products (-4.3%), chemical products (-2.7%), paper and cardboard (-2.5%) and foodstuffs and fodder (-2.2%) reported declines.

In the reference month of May, Germany’s manufacturing industry recovered to some extent from the external shock which it suffered due to Russia’s war of aggression against Ukraine. Germany as an export-oriented country is disproportionately affected by the trade sanctions against Russia and the supply chain disruptions caused by the shortage of key intermediate goods. Following a sharp decline in March, industrial production stabilised again and grew noticeably in April and May. The high level of uncertainty due to the war and the risk of a far-reaching cessation of deliveries of Russian gas will however create major challenges for many firms.


[1] Press release by the Federal Statistical Office of 7 July 2022. In today’s publication, the Federal Statistical Office has changed the method for calculating the production index for the economic activities EA 29.10 "Manufacture of motor vehicles and engines" to better reflect the structural change towards increased production of motor vehicles with electric or hybrid drive systems.

[2] All figures are based on provisional data and have been adjusted for price, calendar day and seasonal factors (X13 JDemetra+ procedure).