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Thursday 17th of February 2011
February 8, 2009    

German industrial output falls as demand slumps

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by Kay Murchie

Germany, which is Europe’s largest economy, has experienced a record fall in industrial production due to a slump in demand for plant and machinery.

Figures from the Economy Ministry revealed that output fell by 4.6% in December - the largest fall since records commenced 18 years ago.

Year-on-year output fell by 12% and the organisation expects output to remain weak over the next few months.

Meanwhile, manufacturing output fell by 5.3% as the country’s car industry has been affected by a slump in global demand for cars.

Energy output also fell by 1% but a rise of 1.4% in construction output was recorded.

With regard to the motor industry, Volkswagen AG and Bayerische Motoren Werke AG have slashed working hours for over 80,000 employees due to a fall in demand.

The Government is forecasting that the economy will shrink by 2.2% this year.

In November, official figures confirmed that Germany had entered recession after gross domestic product (GDP) fell by 0.5% in the third quarter, followed by a 0.4% fall in the second quarter.

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