Development of output in the goods-producing sector in July 2023

According to the Federal Statistical Office1, output in the goods-producing sector in Germany fell again in July and was down by -0.8% compared with the previous month.2 This is the third decline in a row. Industrial output fell by -1.8%, while construction output increased by +2.6%. There was also a noticeable increase in the energy sector in July (+2.2%), after some sharp declines since the beginning of the year.

In the large sector auf vehicles and vehicle parts, output decreased significantly by -9.4%. Output in the important sector of mechanical engineering also decreased in July (-1.6%). Furthermore, declines in output were recorded in the pharmaceutical sector (-1.1%) as well as in data processing equipment, electrical and optical products (-4.4%).

The particularly energy-intensive industrial sectors saw a decline of -0.6% after stabilising in the previous month. In particular, the manufacture of chemical products declined (-1.1%), while the metal production and processing sector recorded growth of +2.0%.
These figures show that, at the beginning of the third quarter, industrial production has still not recovered from its weakness. In view of the much bleaker business and export outlook of companies and the overall weak order activity, a noticeable recovery in industrial production is not yet in sight.

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¹ Press release by the Federal Statistical Office of 7 September 2023.

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