The comparatively small number of school holidays and holiday leave prevented an even larger decrease in production compared with the same month a year earlier.
Germany’s production in industry in real terms was down by 0.3 per cent in July 2022 on the previous month on a price, seasonally, and calendar adjusted basis, following a month-on-month increase of 0.8 per cent in June 2022 (provisional value: +0.4 per cent), according to provisional data of the Destatis, which is a federal authority of Germany.
In July 2022, production in industry excluding energy and construction was down by 1.0 per cent in seasonally and calendar adjusted terms, compared with June 2022. Declines in production were observed in all main groupings. The production of consumer goods fell by 2.4 per cent, capital goods production by 0.8 per cent, and intermediate goods production by 0.6 per cent. The decrease in the consumer goods sector was mainly due to the development of non-durable goods production, which went down by 3.0 per cent. This sector includes the food industry, added the release by Destatis.
Outside industry, energy production in July 2022 was up by 2.8 per cent and production in construction by 1.4 per cent on the previous month.
In the energy-intensive industrial branches, production declined by 1.9 per cent in July 2022 compared with June 2022. This decrease was much larger than in industry as a whole. Production in the energy-intensive industrial branches has dropped by 6.9 per cent since February 2022.
Production is still affected by the extreme shortage of intermediate products. Enterprises still have difficulties completing their orders as supply chains are interrupted because of the war in Ukraine and distortions persist that have been caused by the COVID-19 crisis. Moreover, 73.3 per cent of the industrial enterprises surveyed complained of bottlenecks and problems in procuring intermediate products and raw materials in July 2022, according to the ifo Institute for Economic Research.
Fibre2Fashion News Desk (NB)