ATS
German industrial production rebounded more than expected in August, due to volatility in the automobile sector, without a lasting recovery in the manufacturing sector being in sight, according to figures published Tuesday by Office Destatis.
This key indicator for the manufacturing sector climbed 2.9% over one month, in seasonally adjusted (CVS) data, making up for the fall observed in July. Analysts polled by Factset had forecast a more modest rebound of 0.8%.
Over a less volatile three-month period, production from June 2024 to August 2024 was 1.3% lower than the previous three months.
Compared to the same month of the previous year, August 2023, production in August 2024 was 2.7% lower again in CVS data.
No recovery in the industrial situation is in sight, comments the Ministry of the Economy in a separate press release.
Production in the automobile industry fluctuates sharply from one month to the next, influencing the overall evolution of manufacturing production.
Production of vehicles and automobile parts increased by 19.3% in August after a drop of 8.2% in July.
Over the year, the sluggishness of automobile sales in Germany, the largest European market, pushed the country’s three main manufacturers to review their annual results forecasts in September.
Volkswagen is also negotiating a drastic savings plan with employee representatives, which could lead to the closure of several factories in Germany, something never seen before.
Beyond the automobile industry, confidence indicators among manufacturers remain weak, orders are stagnating at a low level and we “should expect moderate developments in the manufacturing industry in Germany for the moment,” concludes the ministry. of the Economy.
The German government now forecasts a contraction of the economy for this year, with a drop of 0.2% in gross domestic product, compared to growth of 0.3% anticipated so far, according to the German press.
afp
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