Schweißer symbolisiert die Entwicklung der Produktion im produzierenden Gewerbe

© Tremblay

According to the Federal Statistical Office1, output in the goods-producing sector fell slightly in July as compared to the previous month (-0.3%).2 Industrial output declined by 1.0% between June and July, whilst construction sector output increased by 1.4%. The energy sector registered a substantial rise by 2.8%.

The important area of cars and car parts again saw a setback (-4.6%) after a strong increase in the preceding month. Mechanical engineering firms also cut their output (-1.5%). Energy-intensive sectors, including the production of chemical products (-2.2%), metal production and metalworking (-0.6%), manufacturing of glass, glassware and ceramics (-0.9%) and the production of paper and cardboard (-4.2%), registered declines, and in some cases strong declines. Manufacturers of foodstuffs and animal feed also reported a sharp drop (-4.2%). Growth was mainly driven by the areas of data processing equipment (+2.9%) and electrical equipment (+2.0%).

Industrial output had a weak start to the third quarter. High energy prices continue to be a burden and have a dampening effect on industrial activities. The reduction of Russian gas supplies and the great uncertainty due to the war continue to impact negatively on the prospects for the rest of the year.

[1] Press release by the Federal Statistical Office of 7 September 2022.
[2] All figures are based on provisional data and have been adjusted for price, calendar day and seasonal factors (X13 JDemetra+ procedure).