As the Federal Statistical Office (Destatis) announced today, industrial production in Germany fell by 3.9% in March. Analysts had expected a decline of 1%. The effects of supply chain disruption and rising costs are making themselves felt in industry.
In February, German industrial production increased by only 0.1%, showing that problems in the supply chain continue to exert pressure on German economic activity.
The Bureau of Statistics also stated that Germany’s energy production fell 11% in March, while construction fell 1.1%.
Yesterday, the Federal Statistical Office reported that new orders in German industry fell by 4.7% in March. This is the sharpest decline since October 2021 and is below analysts’ forecasts, who had expected a drop of 1.1% for March.
Thomas Gitzel, Chief Economist at VP Bank, said the German economy is in recession. In addition, the war in Ukraine, supply chain problems and high inflation rates are affecting companies’ investment needs.