Development of output in the goods-producing sector in February 2024

According to figures from the Federal Statistical Office¹, output in the goods-producing sector grew by 2.1% in February compared with the preceding month. This is the second successive substantial rise. Industrial output also continued to rise (+1.9%; January: +1.3%). Prior to this, it had been falling since May 2023. The construction industry saw strong growth of 7.9%, following on from an expansion of 2.9% in January. In contrast, latest figures show that energy output dropped significantly again, by 6.5% (January: ‑2.7%).

Within industry, the individual sectors saw differing developments. Significant increases in production were recorded in chemical products (+4.6%), pharmaceutical products (+6.4%), and the important sector of cars/car parts (+5.7%). By contrast, output in the similarly significant sector of mechanical engineering was somewhat lower (-1.0%). The production of electrical equipment (-2.7%) and printed products (-2.6%) was also down.

The latest figures on output in the goods-producing sector, and especially in the industrial sector, show growing indications of a gradual bottoming-out. Prior to this, leading indicators like the level of new orders in the manufacturing sector and the indicators of sentiment like the ifo business climate and the purchasing managers’ expectations had already been pointing in this direction.
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^[1] Press release by the Federal Statistical Office of 8 April 2024. All figures are based on provisional data and have been adjusted for price, calendar day and seasonal factors (X13 JDemetra+ procedure).