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 fell by 0.5% in October compared with the preceding month. Industrial production declined by 0.4%, and construction output by 0.3%. Within industry, production of capital goods and intermediate goods grew by 0.3% and 0.2% respectively, while output of consumer goods dropped by 3.2%. Following a strong recovery in September, production in the automotive industry declined by 0.5%.

In the two-month comparison of July/August versus September/October, output in the goods-producing sector increased slightly by 0.1%. While industrial output stagnated, construction output grew considerably by 2.2%.

Industrial output had a weak start to the fourth quarter. The decline in production in the automotive industry shows that the problems related to the switch to the new test cycle (WLTP) are being resolved only slowly. However, a sharp rise in new orders in the automotive industry and a greater variety of types of cars that have been approved under the new standard suggest that German industry will expand again at a faster rate in the course of the last quarter of the year.


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