By Hans Bentzien
FRANKFURT (Dow Jones)–Production in Germany’s manufacturing sector was weaker than expected in November. As the Federal Statistical Office (Destatis) announced, it fell by 0.7 percent compared to the previous month and was 4.8 (October: 3.4) percent below the level of the same month last year. Economists surveyed by Dow Jones Newswires had forecast stagnation at the previous month’s level. However, the decline in industrial sales had already indicated weaker production. The monthly production decline reported for October was revised to 0.3 percent from 0.4 percent.
Industrial production in the narrower sense fell by 0.5 (minus 0.4) percent. The production of capital goods fell by 0.7 (minus 0.6) percent, the production of intermediate goods by 0.5 (minus 0.4) percent and the production of consumer goods by 0.1 (plus 0.3) percent. Energy production increased by 3.9 (plus 6.5) percent, while construction production fell by 2.9 (minus 1.7).
Production of automobiles and automobile parts fell by 0.6 percent in November and that of electrical equipment by 3.3 percent. Pharmaceutical production fell by 3.3 percent, and the production of data processing equipment, electrical and optical products fell by 5.7 percent.
“A quick turnaround in the industrial economy cannot be expected given current leading indicators such as incoming orders and the business climate. However, as the year progresses, a recovery in industrial production is likely to become apparent against the background of the expected domestic economic recovery and a rebound in exports,” said the Federal Ministry of Economics.