Source: iStock.com/Tony Tremblay

© iStock.com/Tony Tremblay

According to the Federal Statistical Office [1], output in the goods-producing sector fell by 0.6% in July compared with the preceding month.[2] While industrial output decreased by 0.8%, construction output grew by 0.2%. Within industry, manufacturers of intermediate and capital goods saw production decrease by 0.7% and 1.2% respectively, whilst the production of consumer goods rose by 0.6%.

The two-month comparison of June/July against April/May shows a drop of 1.4% in the goods-producing industries. There was a notable decline in industrial output (-1.3%) and energy generation (-5.6%) figures, in particular. In fact, many industrial sectors reported a decline in output. The construction sector experienced a flat development (-0.2%)

Economic development in the industrial sector remains weak. The production figures for July were about 1.4% below the average for the second quarter. Given the economy’s weak start to the second semester of 2019 and the fact that new orders are still not catching up, industrial activity is not likely to improve in the near future. This notwithstanding, construction activity remains intact.

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[1] Press release by the Federal Statistical Office of 6 September 2019.
[2] All figures are based on provisional data and have been adjusted for price, calendar day and seasonal factors (X13 JDemetra+ procedure).