(News Bulletin 247) – German industrial production fell much more than expected in March, a movement which mainly affected the automotive sector, show official statistics published on Monday.
Overall, the decline in production reached 3.4% in seasonally adjusted data compared to February, while BofA economists forecast a decline of only 0.5%.
These disappointing figures mean that much of the strength in manufacturing seen over the past two months has now been erased.
‘Instead of the economic recovery expected by many, it is the scenario of a moderate recession which is looming in the course of the second half of the year’, react the analysts of Commerzbank.
In its briefing note, Destatis, the Federal Institute of Statistics, explains this heavier than expected decline by the 6.5% drop from one month to the next in the production of vehicles and spare parts.
The drop in the manufacture of machine tools (-3.4%) and the construction sector (-4.6%) also weighed on the statistics.
The February figure has also been revised upwards to now show an increase of 2.1% instead of an increase of 2% initially announced.
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