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, output in the goods-producing sector rose by 0.2% in September compared with the preceding month. Whilst industrial output (0.0%) was stable, construction output rose by 2.2%. Within the industrial sector, capital goods grew by 0.9%, whilst intermediate and consumer goods shrank by 1.0% and 0.3% respectively. Production in the automotive industry rose by 3.8% again following a major drop in production in September.

The quarterly comparison shows a drop of 0.9% in the goods-producing industries. This means that industrial production was down considerably over the preceding period (-1.4%). Output in the construction sector, however, was 0.5% higher.

In the third quarter, the industrial sector experienced a temporary dip. The decline in industrial production in the third quarter was almost entirely attributable to the automotive industry. This decline was to do with the changeover to the new test cycle (WLTP). The problems surrounding the WLTP are likely to be overcome step by step. This means that industrial output is expected to pick up at the end of the year.

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