ifo Institute: German Industrial Production to Decline Further
In the coming three months, German industry will reduce its output further, albeit somewhat more slowly than had been assumed last month. The ifo index for industrial production expectations rose slightly in December from minus 6.6 to minus 5.7 points.
Developments in different industries are very varied. The brightest ray of hope shone on the chemical industry, where the index jumped from minus 12.2 to plus 8.1 points. Manufacturers of rubber and plastic goods reported an improvement, too, from minus 1.1 to plus 6.4 points. However, manufacturers of metal products reported only a slight improvement, from minus 21.9 to minus 20.8 points.
In contrast, production expectations deteriorated from minus 20 to minus 24 points in the automotive sector and from minus 8.1 to minus 12.7 points in mechanical engineering. In electrical equipment manufacturing, the index fell from minus 11.3 to minus 14.3 points, while in metal manufacturing and processing it plummeted from minus 26.8 to minus 35.3 points.
The German Federal Statistical Office will today announce production figures for November. ifo figures for November have been seasonally adjusted retroactively.
