Industrial Production in Germany Sees Significant Decline in December 2024
According to the Federal Statistical Office (Destatis), Germany’s industrial production in December 2024 saw a significant decline, dropping by 2.4% compared to the previous month, on a seasonally and calendar-adjusted basis. This marks the lowest level since May 2020.
The decline is largely attributed to the significant drop in the automotive industry, which saw a 10% decline, as well as the machinery and equipment manufacturing sector, which fell by 10.5%. On the other hand, the pharmaceutical industry saw a notable increase of 11.6%.
Industrial production, excluding energy and construction, decreased by 3.3% in December 2024 compared to the previous month, on a seasonally and calendar-adjusted basis. The production of capital goods dropped by 4.7%, while that of intermediate goods fell by 3.3%. In contrast, the production of consumer goods saw a 0.9% increase.
Energy production, excluding the industrial sector, saw a 1.1% increase in December 2024 compared to the previous month. Construction production remained at the same level as the previous month, with a 0.0% change.
Compared to the same period in the previous year, industrial production in December 2024 was down by 4.1% on a calendar-adjusted basis. The production of energy-intensive industries saw a 3.1% decline in December 2024 compared to the previous month and a 2.0% increase compared to the same period in the previous year.
For the entire year of 2024, industrial production in Germany saw a 4.5% decline compared to the previous year, with a continued downward trend since the spring of 2023. The energy sector saw a 3.2% decline in 2024, following a 14.1% drop in the previous year. The construction sector also experienced a 3.2% decline, driven by a 3.4% drop in the heavy construction sector and a 6.9% decline in high-rise construction, while the civil engineering sector saw a 2.1% increase.
Investment goods production in 2024 was down by 5.6% compared to the previous year, largely driven by the automotive and machinery industries, which saw declines of 7.2% and 8.1%, respectively. In contrast, the production of other transportation equipment, including aircraft, ships and military vehicles, saw a 6.5% increase.
Production of intermediate goods in 2024 was down by 5.0% compared to the previous year, driven by declines in the production of electrical equipment and metal products, which fell by 14.6% and 6.4%, respectively.
Energy-intensive industries, on the other hand, saw a 0.6% increase in production in 2024, following significant declines of 11.2% in the previous year and 5.7% in the year before that, according to the Federal Statistical Office.