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German output rises in September as car factories rebound

German industrial production rose 0.7 per cent in September, supported by a sharp rebound in vehicle manufacturing after factory holidays and production changeovers. Pharmaceuticals also grew, while construction and machinery output declined. Production nevertheless fell 0.4 per cent over the third quarter. August’s monthly increase was revised down as additional construction data became available.

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Side profile of an unbadged car body on a production conveyor beside robotic arms inside a German automotive assembly hall.

Vehicle factories drive September’s increase

German production increased 0.7 per cent in September from August, on a price-, seasonally and calendar-adjusted basis. Provisional figures released on 6 November by Germany’s Federal Statistical Office, Destatis, showed vehicle manufacturing rising 17.1 per cent. The automotive rebound followed two weak months affected partly by factory holidays and production changeovers.[1], [2]

Pharmaceutical production also rebounded, increasing 8 per cent after two weaker months. Construction output fell 2.6 per cent, while machinery and equipment production declined 6.5 per cent following an increase of 5.8 per cent in August.[1]

The quarterly comparison remains negative

Total production fell 0.4 per cent in the third quarter from the second quarter. September output was nevertheless 0.4 per cent above a year earlier after calendar adjustment. Excluding energy and construction, industrial production rose 1.7 per cent monthly and 0.3 per cent annually. Capital goods output increased 3 per cent from August, consumer goods 0.8 per cent and intermediate goods 0.1 per cent. Energy production declined 1.2 per cent.[1]

Construction data prompt a revision to August

August’s overall monthly increase was revised from 2 per cent to 1 per cent, with additional construction-business turnover tax returns incorporated into the data. Destatis also corrected historical construction and other transport equipment series after identifying a technical error. Energy-intensive industries increased output 0.8 per cent in September from August, but their production remained 3.5 per cent below the preceding quarter and 1.9 per cent below a year earlier.[1]

References

  1. News sourceDestatisGerman production increases 0.7 per cent in September↩1↩2↩3↩4
  2. News sourceAnadolu AgencyGerman industrial output rises 0.7 per cent in September↩
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