German industry hits 2020 low as automotive woes deepen
German industrial production in December 2024 fell by 2.4% compared to November, reaching its lowest level since May 2020. According to the German statistical office Destatis, the decline was 4.5% throughout 2024 compared to the previous year.
According to the latest data from Destatis, production in Germany's manufacturing sector is significantly shrinking. In December 2024, the decline was 3.1% year over year, compared to 0.9% in the previous three months.
In November 2024, there was an increase in production by 1.3% compared to October. However, revising the preliminary results for October showed a decline of 1.3%.
Automotive and machinery industries drag down
The most significant contributor to the December decline was the automotive sector, where production decreased by 10% compared to November. Machinery production also declined considerably, by 10.5%. The only bright spot was an increase in the pharmaceutical industry by 11.6%.
Capital goods production fell by 4.7%, and intermediate goods by 3.3%. Only consumer goods production recorded a slight increase of 0.9%. The energy sector increased production by 1.1%, while the construction sector maintained its level from the previous month.
Energy-intensive industries in a difficult situation
In energy-intensive industries, production in December 2024 fell by 3.1% compared to November. Every quarter, this sector recorded a decline of 2.6%. However, compared to December 2023, production was higher by 2%.
Throughout 2024, the industry recorded a production decline of 4.9%. In the energy sector, there was a decline of 3.2%, following a significant drop of 14.1% in the previous year. The construction sector experienced a decrease of 3.2%, with high-rise construction being the hardest hi,t with a fall of 6.9%.
