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German industry production remains well below pre-corona level

Photo: ANP

German industrial production unexpectedly increased slightly in June. But that does not make up for the decline in production from earlier this year. The numbers remain well below pre-coronavirus levels.

The fact that things have been going down for months at the factories of our eastern neighbors has to do with the large shortage of parts that many companies have to contend with. This is again a result of the disruptions of supply chains due to, for example, the war in Ukraine and corona lockdowns in China.

In June, however, production rose 0.4 percent compared to a month earlier, while economists had generally expected a further decline. But compared to the level of a year ago, production was 0.5 percent lower. In addition, 5.8 percent less was produced than before the pandemic, says economist Andrew Kenningham of the firm Capital Economics. And it will remain that way for a while, he fears.

Kenningham anticipates that the industry of the Netherlands’ most important trading partner will face even more difficulties in the second half of the year. That’s because energy prices have been rising lately and the dry summer is making important German waterways difficult to navigate. That would make a renewed contraction in production likely.



German industry production remains well below pre-corona level
Source link German industry production remains well below pre-corona level

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