LAST UPDATE 10:07
German industrial production fell in December, according to official figures, as supply chain problems hit Europe’s largest economy late last year.
The Federal Statistical Office noted that industrial production fell 0.3% on a monthly basis, following an upwardly revised increase of 0.3% in November.
Estimates spoke of an increase of 0.4%.
Overall for 2021 the production was 3% higher compared to 2020 and 5.5% lower than before the crisis 2019.
The German economy “ran” at a rate of 2.8% last year, compared to 7% in neighboring France, exposing Germany to vulnerabilities in supply chain problems that hold back the manufacturing sector, which is also the backbone of its exports. .
Germany is often cited as the engine of the European economy, but the restrictions imposed in the autumn to combat the fourth wave of the pandemic, as well as supply disruptions, translated into a 0.7% contraction in the fourth quarter.
There were some indications of a more positive start in 2022.
Last week’s data showed that the manufacturing sector grew for the first time in six months in January, as easing problems allowed producers to increase production to meet higher demand.
The German business climate improved in January for the first time in seven months as a easing of supply problems improved prospects for manufacturers, promising a strong recovery from the spring pandemic.
Source: Capital
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