Economic activity also generates and requires transport services.
(Photo: IMAGO/Arnulf Hettrich)
Berlin Truck traffic on the German autobahns, which is considered to be an early indicator of the economic trend, increased minimally in April. The mileage of toll trucks with at least four axles on federal motorways rose by 0.1 percent on the previous month, adjusted for calendar and seasonal effects, as reported by the Federal Statistical Office on Tuesday.
In March there had been a sharp decline of around two and a half percent. Compared to the same month last year, however, the truck toll mileage index fell by 3.1 percent in the past month.
The truck mileage on motorways is closely monitored by economists: It provides very early indications of the current economic development in industry, since economic activity also generates and requires transport services.
The slight increase is therefore a signal that the economy has at least stabilized. Production in industry, construction and utilities fell 3.4 percent in March compared to the previous month, the worst it has been in a year.
Some economists see this as a sign of a recession, especially since exports and industrial orders as well as retail sales fell in March. “Unlike most economists, we do not expect an economic recovery for the second half of the year, but rather a contraction in gross domestic product,” said Commerzbank chief economist Jörg Kramer. The interest rates, which have risen sharply in many regions of the world, are likely to increasingly slow down demand for goods “Made in Germany”.
The European Central Bank raised its key interest rate last week in the fight against inflation for the seventh time in a row – from 3.50 to 3.75 percent. ECB President Christine Lagarde signaled that the end of the road has not yet been reached. “We still have a way to go,” said Lagarde.
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