Decrease in December 2023 by 1.6 percent compared to the previous month
According to preliminary data from the Federal Statistical Office (Destatis), real production in the manufacturing sector decreased by 1.6 percent in December 2023 compared to the previous month.
Compared to December 2022, production in the manufacturing sector is 3.0 percent lower.
Destatis reports that production from October 2023 to December 2023 was 1.8 percent lower than in the previous three months.
Overall, production in 2023 decreased by 1.5 percent compared to 2022.
Energy-Intensive Industries and Energy Generation
Significant declines were observed in energy-intensive industries and energy generation.
In the energy-intensive sector, production decreased by 5.8 percent in December 2023 compared to November 2023. In the three-month period from October to December 2023, production in these industries was 2.2 percent lower than in the previous three months. Compared to December 2022, energy-intensive production in December 2023 decreased by 4.0 percent.
Outside the industry, energy generation increased by 4.1 percent in December 2023.
According to Destatis, industrial production in December 2023 saw a decrease of 1.5 percent compared to the previous month and a decrease of 3.7 percent compared to December 2022. This decline is mainly attributed to a decrease of 5.2 percent in the production of intermediate goods and 0.9 percent in the production of consumer goods. On the other hand, the production of capital goods increased by 1.3 percent.
Looking Back at 2023
The decline in production in the manufacturing sector in 2023 resulted from a decrease in production by 0.7 percent in industry, by 15.0 percent in energy generation, and by 0.8 percent in construction compared to the previous year. Production remained stable until May 2023, then showed a consistent decline in the following months compared to the previous month.
The industry recorded a decline throughout the year, especially in energy-intensive sectors.
Especially around mid-year, energy generation temporarily declined due to lower energy demand from the industry and favorable electricity imports. Coal-based electricity generation decreased in Germany, contributing to the overall decline. However, wind power showed a positive development and reached its highest level in 2023.
Source: www.kloepfel-consulting.com