Production Plans in Industry Subdued
German industry’s production expectations for the coming months have deteriorated, falling to 4.5 points in December from 5.6 points in November. This is a finding from the most recent ifo Business Survey. “While the picture is very different across different industries, plans to curtail production are few on the ground,” says ifo expert Klaus Wohlrabe.
The indicator collapsed in the pharmaceutical industry: having stood at 36 points in November, it dropped to just 6 points in December. The automotive industry plans to curtail production; the indicator here fell from minus 1 point to minus 21 points in December. The only industries to be more pessimistic in December are manufacturers of leather and related products, at minus 33 points, and the clothing industry, at minus 40 points.
Furniture manufacturers, meanwhile, are expecting to increase production by a significant margin. Their indicator rose from 3 points in November to 24 points. Production is also being ramped up in textiles. Computer manufacturers’ production expectations are still expansive; their production expectations remain at 28 points in December.
Beverage producers have put aside planned production cutbacks for the time being. Their indicator jumped to minus 1 point, having stood at minus 21 points in November. Developments were similar among food manufacturers.
The German Federal Statistical Office will announce its November figures for industrial production on Friday.
