Source: iStock.com/Tony Tremblay

© iStock.com/Tony Tremblay

According to the Federal Statistical Office [1], output in the goods-producing sector rose by 8.9% in June compared with the preceding month. [2] The manufacturing sector again experienced a clear rise in output, which grew by 11.1%. The key motor vehicles and parts sector, however, saw the highest increase of 54.7%. The construction industry increased its production by 1.4%.

In the second quarter of 2020, output in the goods-producing industries weakened by 16.1% compared with the previous quarter. This was mainly due to the restrictions imposed in the wake of the shutdown in the month of April. Industrial output declined by 19.3%, and construction sector output was reduced by 4.2%.

The recovery in the manufacturing sector that had started in May this year also continued in June. In the industrial sector, output most recently stood at just over 87% of the production level in the fourth quarter of 2019, before the outbreak of the coronavirus pandemic. Output in the motor vehicles and parts sector reached a level of around 80%. In view of continuing weak demand, especially from abroad, and the unchanged high level of uncertainty about the way in which the pandemic will develop, the continued catch-up process is likely to take some time.

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[1] Press release by the Federal Statistical Office of 7 August 2020.
[2] All figures are based on provisional data and have been adjusted for price, calendar, and seasonal factors (X13 JDemetra+ procedure).