German Industrial Production Drops 4.0% More Than Anticipated in August

German production in the industry fell by 4.0% in August 2021 from the previous month on a seasonally and calendar adjusted price basis.

Source: Federal Statistics Office

DAX up +1.32%, EUR USD up +0.07%

On an annualized adjusted basis, the production industry increased by 1.7% in August 2021 compared to August 2020.

Germany’s production in August 2021 was still 9.0% lower than the levels recorded in February 2020, the month before the restrictions were imposed due to the COVID-19 pandemic in Germany.

Production in the industry in the most powerful economy in Europe, excluding energy and construction, dropped by 4.7%.

Producers are still experiencing production challenges resulting from a shortage of intermediate products. Production of capital goods posted a decline of 7.8%.

Overall, the manufacture of motor vehicles, trailers, and semi-trailers plunged by 17.5% in August compared to July. The manufacture of machinery and equipment was also 6.3% lower than the prior month.

Production of consumer goods also fell by 2.6%, as intermediate goods dropped by 2.4%. Energy production also rose by 4.1% in July 2021, and production in construction fell by 3.1%.