Business & Economy

Germany’s industrial output slumps amid recession fears

Berlin, May 8 (EFE).- Germany’s industrial production slid by 3.4% in March, spurring recession fears in Europe, the federal statistics office said Monday.

The setback comes after an increase in industrial output in February of 2.1% compared to 2% recorded in January, according to Germany’s Federal Statistical Office (Destatis).

The automobile industry played a particularly important role in the production slump with the manufacture of motor vehicles and their components contracting by 6.5% in March, after growing by 6.9% in February.

Production across other sectors also slid in March with the mechanical engineering sector dropping by 3.4% and the construction sector sliding by 4.6%.

Production across the industrial sector fell by 3.3% compared to February and increased by 3.6% in year-on-year terms.

Within the industrial sector, the production of capital goods fell by 4.4%, the production of intermediate goods slumped by 3.5%, and consumer goods fell by 0.1%.

Production in energy-intensive industrial branches was down by 3.3% compared to February.

“After production in the industrial sector developed dynamically at the beginning of the year the beginning of the year, there was an unexpectedly sharp decline in March,” the economy ministry said in a statement.

The economy ministry added that business confidence had been improving recently, pointing to an economic recovery throughout 2023.

“Russia’s attack on Ukraine and the related sanctions are having an impact on many parts of the economy and society,” the federal statistical agency warned in its report. EFE


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