ifo Institute: German Industry Expects Historic Slump in Production
German industry is expecting an unprecedented slump in production. In April, the relevant ifo index for the next three months fell to minus 51.4 points from minus 21.4 points in March. This is its lowest value since German reunification; in December 2008, the index stood at minus 42.9 points. Dropping by 30.0 points, the decline was even more pronounced than in March, when the index fell by 22.7 points. “The trough in production is getting deeper,” says Klaus Wohlrabe, Head of Surveys at ifo.
“Only manufacturers of pharmaceutical products feel any optimism about the future. Their index rose from minus 19.4 points to plus 13.8 points in April,” Wohlrabe adds.
For manufacturers of rubber and plastic goods, the index dropped from minus 33 points in March to minus 55 points in April. In the automotive industry, the index fell from minus 36 points in March to minus 44 points. The index for the chemical industry plunged from minus 11 points in March to minus 42 points in April. Food manufacturers saw their index fall from plus 3 points to minus 17 points.
Expectations in coke and refined petroleum products manufacturing are particularly pessimistic, where the index plummeted from minus 0.1 to minus 92.0 points.
In beverage manufacturing, the production index fell to minus 77 points in April, having stood at plus 5 points in March. Expectations are even bleaker in leather, leather products, and footwear manufacturing, where the index was down to minus 98 points in April from minus 86 points in March. Manufacturers of furniture, clothing, glassware, and electrical equipment are also extremely pessimistic about the future.
The German Federal Statistical Office has published its March figures for industrial production today, Thursday.
