Experts had expected a smaller increase in production.
(Photo: dpa)
Berlin German companies, stricken by inflation and material shortages, surprisingly ramped up their production in September. Industry, construction and energy suppliers together produced 0.6 percent more than in the previous month, as the Federal Statistical Office announced on Monday.
Economists polled by Reuters had expected an increase of just 0.2 percent after output was cut by a revised 1.2 percent in August. Compared to September 2021, it was now 2.6 percent higher.
“But the recent slump in incoming orders and the Ifo business climate, which has been falling for months, continue to point to a recession in the winter half-year,” explained Commerzbank chief economist Jörg Krämer. “However, this should not be as deep as in the Corona crisis, as long as well-stocked gas storage facilities and high gas deliveries make gas rationing unlikely.”
Recently, the bad news from the economy had piled up, which according to the head of the Bundesbank, Joachim Nagel, is likely to face a technical recession – that is, two quarters of shrinking gross domestic product in a row. Incoming orders fell by 4.0 percent in September.
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And the high energy prices and the global economic slowdown are also affecting exporters: exports shrank by 0.5 percent in September.
More: Consumer sentiment is still in the doldrums – but things are looking up