Development of production in the manufacturing sector – reporting month September 2024

Production ends the third quarter on a weak note. According to the Federal Statistical Office, output in the manufacturing sector in September, adjusted for price, calendar and seasonal effects, fell by 2.5% compared to the previous month. In August, output had still increased by 2.6% according to revised data. The decline in production is being felt in many areas, with output falling in industry (-2.7 %), construction (-1.4 %) and the energy sector (-2.1 %).

Most of the individual branches of industry recorded negative developments compared with the previous month: significant declines in production were seen in particular in important areas such as the manufacture of motor vehicles and motor vehicle parts (-7.8 %), chemical products (-4.3 %) and data processing equipment and electrical and optical products (-1.5 %). By contrast, the areas of mechanical engineering (+1.7%), metal products (+0.5%) and food and animal feed (+1.5%) were able to increase their output.

Production in the manufacturing sector thus continued its downward trend in September. Even in the more meaningful quarterly comparison, the development is negative at -1.9% compared to the second quarter, with the slowdown in the construction industry being somewhat less pronounced at -1.4% and in the energy sector slightly stronger at -2.3%.

Industrial activity remains very weak due to ongoing geopolitical uncertainties and the decline in incoming orders. The recent positive trend in incoming orders, particularly from abroad, and the latest improvement in the ifo and S&P Global sentiment indicators suggest that industrial activity will bottom out towards the end of 2024 and the beginning of 2025 .