Schweißer symbolisiert die Entwicklung der Produktion im produzierenden Gewerbe

© Tremblay

According to the Federal Statistical Office1, production in the manufacturing sector rose slightly in June compared to the previous month (+0.4%).2 In a quarterly comparison, however, production was still down in the second quarter (-1.3%). Industry was able to increase its output by 0.7% compared to the previous month, while production in the construction sector fell by 0.8%. There was no change in the energy sector (0.0%).

In particular, there was a strong increase in the significant area of motor vehicles and motor vehicle parts (+5.5%). Here, production made up for its war-related slump in March and is now back above the level it had reached at the beginning of the year. Developments in the other industrial sectors varied: in mechanical engineering, output increased slightly, up 0.4%. The paper and cardboard (+2.2%) and the food and animal feed sectors (+2.0%), parts of which had reported noticeable declines in the previous month, also increased their production. The manufacture of metal products (-2.1%) and chemical products (-0.7%), on the other hand, declined.

In June, manufacturing continued to recover from the external shock of the Russian war of aggression against Ukraine. Given the high energy prices and the partially disrupted supply chains, the industry is thus showing its resilience. Due to its export orientation, German industry is disproportionally affected by the trade sanctions against Russia. Against the backdrop of reduced gas supplies from Russia and the continued high level of uncertainty caused by the war, the outlook for the second half of the year remains subdued.
[1] Press release by the Federal Statistical Office of 5 August 2022.
[2] All figures are based on provisional data and have been adjusted for price, calendar day and seasonal factors (X13 JDemetra+ procedure).