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In particular, energy-intensive industries such as the chemical industry recorded sharp declines. A turnaround is not in sight at the moment.

Berlin. The German companies have moved back their production surprisingly strongly in December. Industry, construction and energy suppliers together produced 1.6 percent less than in the previous month, as reported by the Federal Statistical Office on Wednesday. This is not only the fourth decline in a row, but also the strongest since March 2023.

Economists surveyed by the Reuters news agency had expected only a minus of 0.4 percent after there had been a minus of 0.2 percent in November.

In 2023, production was 1.5 percent lower than in the previous year. “The most significant declines were suffered in the energy-intensive industries and energy production,” explained the statisticians.

In the current year, too, there is no boom in the current year, there is likely to be no boom in the face of high interest rates, expensive energy, geopolitical risks and a subdued global economy. “The orders from the Corona era have long been completed, and fewer new orders have been coming in for months,” said chief economist Jörg Krämer. “It is clear that companies are shutting down their production.” The Federal Ministry of Economics does not expect a rapid turnaround either. “A reversal is not yet showing off,” commented on the current development. "A constantly only in the further course of the year is likely to recover

Although industrial orders had increased as sharply as they had three and a half years in December at 8.9 percent compared to the previous month – however, they were only due to an exceptionally large order, for example for aircraft. By contrast, in 2023, new business shrank by 5.9 percent.

The export-dependent industry alone produced 1.5 percent less in December than in the previous month. The decline in the chemical industry was particularly strong: there was a strong decline of 7.6 percent here. This means that production in the chemical industry fell to its lowest level since 2023 in 2023. High interest costs are affecting construction production

In December, the energy-intensive industries, which include glass, glassware and ceramics, as well as metal production and processing, producing 5.8 percent less than in the previous month in December. The manufacturers (-1.6 percent) and the manufacturers of electrical equipment (-3.5 percent) also recycled their production. By contrast, the automotive industry reported an increase in production of 4.0 percent.

Energy production grew by 4.1 percent at the end of last year. By contrast, construction production shrank by 3.4 percent. The construction industry is suffering from high interest costs that provide restraint among private and professional investors.