German industrial production falls short of expectations in November

Despite high energy prices and slowing global demand, German industrial companies increased production by 0.2 percent in November. Expectations were for a 0.3 percent increase. Compared to November 2021, it was observed that energy-intensive industrial production decreased by 12.9 percent in November 2022 on a calendar-adjusted basis. The German Federal Statistical Office (Destatis) announced provisional data on industrial production for November. Accordingly, industrial production, adjusted for seasonally and calendar effects, increased by 0.2 percent in November compared to the previous month. Market expectations for industrial production were for a 0.3 percent increase. Destatis also stated in the statement that production in energy-intensive industrial branches increased by 0.2 percent in November compared to October. Energy-intensive industrial production decreased by 12.9 percent annually Compared to November 2021, it was observed that energy-intensive industrial production decreased by 12.9 percent in November 2022 on a calendar-adjusted basis. Meanwhile, October industrial production data, which was announced as a 0.1 percent decrease, was revised to a 0.4 percent increase. The data revealed that industrial production excluding energy and construction increased by 0.5 percent in November compared to the previous month. In the period in question, capital goods production increased by 1.1 percent and intermediate goods production increased by 1.1 percent within industrial production. In November, consumer goods production decreased by 1.5 percent and construction production excluding industry decreased by 0.5 percent compared to the previous month. Energy production increased by 3 percent. In a statement made by the German Ministry of Economics and Climate Protection, it was stated that industrial production stabilized in November after a weak start to the fourth quarter of last year. It was stated in the statement that the gradual end of material shortages will support industrial production in the coming months, and that the industrial production outlook remained moderate in the first quarter due to weak order intake and a cooling global economy. Demand weakened On the other hand, Germany's manufacturing sector has been struggling with decreasing orders in recent months due to weakening demand amid the global economic slowdown. Although the threat of gas shortages in the industry due to the Russia-Ukraine war has been significantly reduced, high energy costs, high inflation and an uncertain economic outlook are creating headwinds for the sector. Experts say that the decreasing orders do not pose a serious threat to the German economy for now, as unfulfilled orders accumulate due to material shortages, but they will cause real difficulties by the end of the year or early 2024.