Catching up stopped
The German economy surprisingly throttled its production in January. Industry, construction and energy suppliers together produced 2.5 percent less than in the previous month, as the Ministry of Economic Affairs announced on Monday.
Economists, on the other hand, had expected an increase of 0.2 percent after the eighth consecutive month of growth in December with a revised plus 1.9 percent. Compared to February 2020, the month before the Corona restrictions began, production was 4.2 percent lower.
The results at the beginning of the year were very different in the individual sectors. The industry cut its production by 0.5 percent and thus for the first time since April 2020. “Despite the measures to combat the pandemic, industrial emissions recorded only a slight decrease in January, mainly due to the shortages in semiconductor products in the automotive industry originated “, explained the ministry. “In contrast, mechanical engineering recorded a noticeable plus.” In the construction industry there was a significant decrease of 12.2 percent, which is probably due in part to the unfavorable weather. The utilities reported an increase of 0.6 percent.
The export-dependent industry can count on a sustained upward trend: its production expectations brightened in February for the third month in a row. The corresponding barometer rose from 9.4 points in January to 20.7 points, as the Ifo Institute found out in its monthly survey of 2,000 companies.
