ifo Institute: Production Plans in German Industry Curtailed

Manufacturers of pharmaceutical products are expecting a major increase in production. The indicator shot up to plus 35 points from minus 2 points in October. Computer manufacturers’ production expectations, too, continued to climb: their indicator rose to 28 points from 23 points in October. Manufacturers of rubber and plastic goods are also still expecting to expand production, although the indicator fell to 17 points from 22 points in October. The indicator in the chemical industry remains positive, but slipped from 18 points in October to 16 points. Among beverage manufacturers the index remained negative, but managed to climb to minus 22 points from minus 42 points in October.

Carmakers are still expecting difficult times. After peaking at plus 53 points in September, the indicator slid to plus 39 points in October and tumbled to minus 1 point in November. Manufacturers of leather, leather products, and footwear do not expect any production increases for the time being: their indicator plummeted as well, down to minus 40 points from minus 6 points in October. The same is true for manufacturers of paper and paperboard, as their indicator fell to minus 6 points from plus 22 points in October. The clothing and food industries are also planning to cut back production considerably compared to October.

The German Federal Statistical Office will announce its October figures for industrial production today, Monday.