Share Prices & Company Research

Market News

08 Feb 2021 | 07:58

German industrial production flat in December

(Sharecast News) - German industrial production was flat in December as coronavirus restrictions took their toll, according to figures released by Destatis on Monday. Industrial production was unchanged following a revised 1.5% increase in November, and versus expectations of a 0.3% rise.

On the year, production fell 1% in December, which was an improvement on the 2.5% decline seen the month before.

The production in industry excluding energy and construction was up 0.9% in December. Within industry, the production of intermediate goods rose 2%, while the production of consumer goods was 2.6% higher. The production of capital goods fell 0.5%.

Outside industry, energy production was down 2.9%, while production in construction was up 3.2%.

Compared with February 2020, a month before coronavirus restrictions were imposed, production in December was 3.6% lower. For 2020 as a whole, production in industry was down 8.5% on the previous year.

Andrew Kenningham, chief Europe economist at Capital Economics, said that after stalling in December, he suspects that factory output will have declined in January.

"Admittedly, business surveys point to continued growth; but the recovery has been losing momentum as output approaches pre-pandemic levels and the vehicle manufacturers association VDA reported a big seasonally-adjusted decline in output," he said.

"With little prospect of a substantial easing in Covid-19 restrictions in the near term, industrial production and overall economic activity will probably shrink in Q1. We are forecasting a sustained recovery beginning in the second quarter, though that is dependent on an acceleration of the vaccination programme."

Get in touch today
Join Redmayne Bentley
Talk to us now about opening a new account or transferring your account from another provider
0113 243 6941
Get in touch today
Contact your local office
Contact your local office to find out more
The value of your investments and the income from them may go down as well as up, and you could get back less than you invested.
Continuing our Personal Service: View our Latest COVID-19 Update: 30th April 2021
We use cookies on this site to improve your experience and help us provide you with a better website. An explanation of the cookies we use and their purpose can be found within our Cookie Policy. Your continued use of this site means you consent to the use of cookies.