“The dichotomy will continue for some time.”
(Photo: obs)
Berlin Despite all the doomsday scenarios, production in German industry fell by just 0.4 percent in October compared to the previous month. This is shown by preliminary figures published by the Federal Statistical Office on Wednesday. Compared to the previous year, industrial production even increased by 0.8 percent.
As a result, a dichotomy in German industry is increasingly emerging. The high prices for gas and electricity are a burden for companies, but not all of them. Vehicle construction, for example, increased by 13.9 percent in October compared to the previous year, and the pharmaceutical industry produced nine percent more.
Energy-intensive sectors such as metal, chemicals or paper, on the other hand, are reducing their operations significantly further than the economy as a whole. “This dichotomy will continue for some time,” expects Robin Jessen, business cycle researcher at the Leibniz Institute for Economic Research (RWI) in Essen.
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