Development of production in manufacturing industry
by Hans Diederichs
Reference month May 2020
According to the Federal Statistical Office, production in the manufacturing industry rose by 7.8% in May compared with the previous month. The increase in industry was particularly pronounced with a plus of 10.3%; the resumption of motor vehicle production, which had largely come to a standstill in April, was the main reason for the rise. The construction industry recorded a comparatively moderate increase of 0.5 %.
In a two-month comparison, production in the manufacturing sector was cut back by 18.3 %. The decline in industry was more severe (-21.8 %). Meanwhile, the decline in construction output was not quite as pronounced (-4.7%).
Industrial production is likely to have bottomed out, but despite the recovery in May, capacities remain significantly underutilised. The increase in new orders points to a further rise in production in the coming months. However, the development of foreign demand in particular remains a risk to the further recovery.
Source: BMWi Photo: iStock.com/Tony Tremblay