The German economy reduced its production in February after a promising start to the year. Industry, construction and energy suppliers together produced 1.3 percent less than in the previous month, as the Federal Statistical Office announced on Monday. Economists surveyed by Reuters had only expected a decline of 0.8 percent after the emission in January grown by 2.0 percent. Compared to the previous year, production was 4.0 percent lower this time. “The production data indicates a continued sideways movement of industrial production,” commented the development of the development. “In view of the order incoming in the trend and the recently announced US customs enhancements, it remains to be seen whether the recently observed noticeable improvement in the mood indicators in industry will exist.” Economists are rather skeptical. “With the US tariffs that have now been announced, there is little view of an early recovery,” said the chief economist from the Hamburg Commercial Bank, Cyrus de la Rubia. “Especially since the competitive pressure from the countries, which are also exposed to higher hurdles for the US market, will still increase.” Industry alone produced 0.5 percent less in February than in the previous month. The areas of food and feed (-5.3 percent), pharmaceutical (-4.0 percent) and chemical products (-1.0 percent) recorded noticeable declines. The recently often characterized by large orders other vehicle construction – such as trains and ships – developed negatively (-1.3 percent). The production of electrical equipment (+3.3 percent) as well as data processing devices, electrical and optical products (+2.6 percent) recorded significant growth.
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