Industrial production in Germany declined by 1.6% m/m in December

Industrial production in Germany in December 2023, taking into account seasonal and calendar factors, decreased by 1.6% compared to the previous month. This is evidenced by preliminary data from the German Federal Statistical Office Destatis.

Compared to December 2022, taking into account calendar factors, production in the German industry decreased by 3%. In monthly dynamics, the indicator has been declining for the seventh month in a row.

Overall, in 2023, industrial production in Germany decreased by 1.5% compared to 2022. In October-December, the figure decreased by 1.8% compared to July-September.

Production in industrial sectors for the month (excluding energy and construction) fell by 1.5% m/m. In the energy sector, the figure grew by 4.1% m/m, while production in the construction sector declined by 3.4% m/m.

According to the final data, in November 2023, industrial production in Germany decreased by 0.2% compared to October and by 4.3% y/y.

Inflation in Germany in 2023 slowed to +5.9% compared to +6.9% in 2022. Energy prices rose by 5.3% y/y after a significant increase of 29.7% in 2022. At the same time, food prices rose particularly sharply over the year, by 12.4% y/y. Core inflation was +5.1% after +3.8% in 2022.

As GMK Center reported earlier, Germany reduced steel production by 3.9% in 2023 compared to 2022, to 35.44 million tons. In December, German steelmakers reduced steel production by 2.3% compared to December 2022 and by 2.5% m/m – to 2.63 million tons.