Strongest increase in German production in a year

Strongest increase in German production in a year

German production in the industrial, construction and energy supply sectors recorded the strongest increase in over a year in January. According to the Federal Statistical Office, total production increased by 2.1 percent compared to the previous month. This development signals a possible end to the recession in Germany and is viewed as positive by economists.

The Federal Ministry of Economics commented on the increase in production as a sign of a gradual economic bottoming out. Early indicators such as new orders in the manufacturing sector and the Ifo business climate had already pointed to positive developments. This upswing is also viewed positively by economists.

The automotive industry in particular recorded a significant increase in production with an increase of 5.7 percent and the chemical industry with an increase of 4.6 percent. In contrast, production in mechanical engineering was reduced by 1.0 percent. The construction industry also recorded an increase of 7.9 percent, while energy production recorded a decline of 6.5 percent.

Exports from Germany, however, experienced a surprising decline of 2.0 percent to 132.9 billion euros in February due to declining demand from Europe and China. In January, however, exports rose by 6.3 percent. Imports unexpectedly rose 3.2 percent for the second straight month. However, the positive export expectations in March indicate a possible recovery in the German export industry and give experts hope for improved development. The prospects for world trade suggested that German exports could benefit from this.