Energy Industry

German industry kept its production surprisingly stable in October despite the energy crisis, inflation and supply problems, the Federal Statistical Office said on Wednesday.

Compared to the previous month, total production only fell by 0.1%, figures showed a smaller decline than estimated.

Economists had expected a more significant decline of around 0.6%.

Compared to October last year, industrial production stagnated.

The industry also did better in September than expected, increasing by 1.1% as opposed to 0.6%.

The Economy Ministry was nevertheless cautious, saying that production had a weak start to the fourth quarter and that the outlook remained gloomy.

German industry has been suffering for some time from the economic consequences of Russia’s war in Ukraine and ongoing supply problems.

Thomas Gitzel, chief economist at the private Lichtenstein firm, VP Bank, said the industry figures were a sign of hope.

Overall production was supported by the construction sector, which showed strong growth of 4.2% each month last quarter.

The Economy Ministry said mild weather could have been a factor for this increase.

In contrast, goods production in industry fell slightly by 0.4%.

Energy production dropped significantly by 7.6%, which the ministry said is probably due to energy-saving efforts.

Germany, which previously got most of its energy sources from Russia, was hit particularly badly by Europe’s energy crisis caused by the war in Ukraine. This has resulted in a large-scale energy saving effort this winter.

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