Production in German Industry Shrunk

Production in German industry shrank in July. The German Federal Statistical Office said that industrial companies in Europe’s largest economy faced supply chain problems, while some energy-intensive companies cut production due to high energy prices.

Total production of Germany’s sizeable industry fell by 0.3 percent that month compared to a month earlier. According to the statistical office, the production of consumer products and capital goods, among other things, decreased.

Many German companies, including car and machine builders, suffer from shortages of materials, which disrupts production. Production did increase in the construction and energy sectors.

The statistical office said that production in Germany’s energy-intensive industry fell by nearly 2 percent in July. Since February of this year, when the Russian invasion of Ukraine began, production there has fallen by almost 7 percent.

This concerns, for example, steel producers and chemical companies that produced less because of the high energy prices.

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