Welder symbolizes the development of production in the manufacturing sector; Source: iStock.com/Tony Tremblay

© iStock.com/Tony Tremblay

According to the Federal Statistical Office, [1] output in the goods-producing sector fell by 1.1% in July compared with the preceding month. [2] While construction output expanded by 2.6%, industrial output declined by 1.9%. In the industrial sector, output of capital goods recorded the largest decline (-2.5%). Output of intermediate goods and consumer goods dropped by 1.4% and 0.9% respectively.

In the two-month comparison of June/July against April/May, output in the goods-producing sector fell slightly by 0.3%. While industrial output declined by 0.6%, construction output grew by 0.7%.

The goods-producing sector had a slow start to the third quarter. The current weak industrial output is also due to temporary logjams in the approval of vehicles under the new WLTP test procedure for cars. Although new orders are coming in sluggishly, the upward trend in industry is likely to continue in view of the high volume of orders after the logjams in the approval of vehicles have been cleared. At the same time, the boom in the construction industry is continuing unabated.

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[1] Press release by the Federal Statistical Office of 7 September 2018.
[2] All figures are based on provisional data and have been adjusted for price, calendar day and seasonal factors (X13 JDemetra+ procedure).