Germany's industrial output dips 1% in October slump
According to preliminary data from the Federal Statistical Office (Destatis), industrial production in Germany decreased by 1 percent in October 2024 compared to September of the same year, taking into account seasonal and calendar adjustments. On an annual basis, there was a decline of as much as 4.5 percent.
In October 2024, industrial production (excluding energy and construction) in Germany recorded a decrease of 0.3 percent compared to September. Consumer goods production decreased by 1 percent, and capital goods by 0.4 percent. The only sector that recorded growth was the production of intermediate goods, which increased by 0.4 percent. The construction sector maintained the same level of production as the previous month.
In the three months from August to October 2024, total production was 0.4 percent lower than in the previous quarter. Notably, the September data was revised—the production drop was 2 percent, while initial estimates indicated a drop of 2.5 percent.
Difficult situation in the energy-intensive sector
The situation in the energy-intensive industry is also concerning. In October 2024, production in this sector fell by 0.9 percent compared to September. From August to October, production in energy-intensive industries was 4 percent lower than in the previous three months.
The data shows that in 2021, energy-intensive industries, which account for 17 percent of the gross value added in the industry, were responsible for 77 percent of the total energy consumption in the industrial sector. In the same year, nearly a million workers (exactly 929,599 people) were employed in almost 7,000 industrial plants.
Significant decline since 2020
The chart attached to the report presents trends in production from 2015 to 2024. It shows noticeable fluctuations, with a particularly deep decline in 2020 related to the pandemic crisis. After this period, there was a rebound, but a downward trend is currently visible.
As the authors of the report emphasize, when analyzing economic indicators, it is important to consider different comparative periods. It is particularly crucial to compare seasonally and calendar-adjusted values against the previous month or quarter, which allows for assessing short-term economic trends.
