OPINION
Market Rating Before FOMC MeetingJan 31
Industrial Production Continues to Decline in Germany
According to the data released today by Destatis, industrial production adjusted for seasonal effects increased by 2.8 percent compared to the precious month. However, it was registered as -0.6 on annual basis.
Production in industry excluding energy and construction was up by 3.2%. Within industry, the production of capital goods showed an increase of 8.2%. The production of motor vehicles, trailers and semi-trailers was up by 12.6%. The production of intermediate goods decreased by 0.4% and the production of consumer goods by 0.1%.
It is clear in the data that the supply bottlenecks due to the pandemic and the transportation costs derived from the increase in energy prices put pressure on industrial production. On the other hand, in November, in addition to the record-breaking number of Covid-19 cases, with the identification of the new Omicron variant, the calls for restrictions increased and the weakening of the German industry is likely to continue.
Production in industry excluding energy and construction was up by 3.2%. Within industry, the production of capital goods showed an increase of 8.2%. The production of motor vehicles, trailers and semi-trailers was up by 12.6%. The production of intermediate goods decreased by 0.4% and the production of consumer goods by 0.1%.
It is clear in the data that the supply bottlenecks due to the pandemic and the transportation costs derived from the increase in energy prices put pressure on industrial production. On the other hand, in November, in addition to the record-breaking number of Covid-19 cases, with the identification of the new Omicron variant, the calls for restrictions increased and the weakening of the German industry is likely to continue.
