German industry got off to a good start in the new year. Total production increased by 3.5 percent from December to January, as the Federal Statistical Office announced today in Wiesbaden.
Analysts had expected an average growth of 1.4 percent. At 2.4 percent, the significant decline in December was reported to be milder than previously assumed at 3.1 percent.
The production development follows a noticeable increase in orders, which the statisticians reported on Tuesday. "This is a real sign of life from the industry," commented analyst Jens-Oliver Niklasch from Landesbank Baden-Württemberg. "An all-round good number at the beginning of the year, plus the upward revision for December." Economist Ralph Solveen from Commerzbank was somewhat more cautious: the figures showed that development in industry was not as weak as the December figures had feared.
Significant increase in construction output
Construction output rose particularly sharply at the beginning of the year, by 12.6 percent. Energy production increased slightly. Goods production in industry increased by 1.9 percent. The increase is due to a significant increase in intermediate goods. Capital goods such as machines and consumer goods were produced less. However, production in the energy-intensive areas recovered significantly after falling sharply in December.
German industry has had a turbulent year. In 2022, companies not only suffered from the multiple upheavals caused by the Ukraine war. The ongoing delivery problems in world trade - an economic consequence of the corona pandemic - also weighed heavily on the industry. Recently, however, these bottlenecks have decreased.