According to the Federal Statistical Office¹, output in the goods-producing sector fell by 1.6% in December as compared to the previous month. This was another significant setback at the end of the year: output declined in both industry and the construction sector (-1.5% and -3.4% respectively). In contrast, the energy sector again registered a strong increase (+4.1%).

Within industry, the individual sectors saw very differing developments. The automotive and automotive parts sector reported a sharp increase (+4.0%). Output also rose in metal production and processing (+0.8%) and the manufacture of pharmaceutical products (+4.7%). In contrast, the mechanical engineering sector (-1.6%) and the electrical equipment sector (-3.5%) reported falls. The manufacture of chemical products also saw a sharp decline at the end of the year (-7.6%). Output in the energy-intensive industries, including the manufacture of chemical products, glass, glassware and ceramics, and metal production and processing, registered a decline totalling 5.8% compared with the previous month.

Altogether, output in the fourth quarter of 2023 was down 1.8% on the third quarter’s figure. There is no sign of a turnaround as yet, although the ifo business climate index for the manufacturing sector has stablised recently. A recovery driven by the domestic economy is likely to set in later in the year.

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^[1] Press release by the Federal Statistical Office of 7 February 2024. All figures are based on provisional data and have been adjusted for price, calendar day and seasonal factors (X13 JDemetra+ procedure).