German industrial production is falling sharply - financial experts are warning of a recession

German industrial production is falling sharply - financial experts are warning of a recession

According to a report by www.n-tv.de, industrial production in Germany fell surprisingly sharply in September. Industry, construction and energy suppliers together produced 1.4 percent less than in the previous month, although experts had only expected a mini-minus of 0.1 percent. This is the fourth consecutive month that production has declined.

Weak overall domestic demand and uncertain global developments continue to weigh on German industrial production. Economists see this as further evidence that Germany could slip into recession again. The weak global economy and high energy prices are putting high pressure on industrial production. Experts warn that the German economy could contract again in the fourth quarter, pointing to a new recession after gross domestic product already fell in the summer quarter.

Construction production remained unchanged from the previous month, but rising interest costs are weighing on the construction industry. This leads to more company bankruptcies and bankruptcies. According to the IWH Institute in Halle, there were 1,037 insolvencies of partnerships and corporations in October, which corresponds to an increase of 44 percent compared to the previous year.

Despite the weak situation in Germany, German companies are more likely to plan investments in international locations than domestically. A survey by the DIHK and the German Chambers of Commerce Abroad (AHK) showed that global investment plans differ significantly from those in Germany.

Overall, the current figures indicate ongoing weakness in German industry and the economy as a whole, which could have a negative impact on the market and the financial sector. The impending recession and increasing bankruptcies could lead to a further deterioration in the economic situation. Despite positive signals for the global market, the situation in Germany remains challenging and requires targeted measures to stabilize the economy.