- Industrial production -0.7% vs +0.5% m/m expected
- Prior -0.3%; revised to -0.5%
That’s a big miss on factory output on the month, even with a negative revision to the February numbers. The decline in March compared to the previous month is attributable to production decreases in energy generation (-4.0%) and mechanical engineering (-2.7%) for the most part. That is offset by increases in the construction industry (+1.9%) and the automotive industry (+1.9%).
If excluding energy and construction, German industrial output fell by 0.9% on the month after seasonal and calendar adjustments.
Looking at the finished breakdown, the production of capital goods declined by 1.6% and production of consumer goods by 1.9%. Meanwhile, the production of intermediate goods increased by 0.8%.
The less volatile three-month comparison still shows industrial production being 1.2% lower than in the three preceding months. So, that continues to highlight some troubles in this space to start the year. That especially in March, with the fallout from the Middle East conflict driving up higher energy prices and economic uncertainty across the region.
