Development of output in the goods-producing sector in April 2024

According to figures from the Federal Statistical Office¹, output in the goods-producing sector nearly stagnated, falling by 0.1% in April compared with the preceding month. It had already fallen slightly in March (-0.4%) following significant growth in previous months. While construction output fell significantly again in April by -2.1% (March -1.0%), industrial output expanded slightly by +0.2% (March -0.2%). Following the previous declines, energy generation increased noticeably by 1.6% (March: -1.5%).

Some branches within the industrial sector saw weaker growth in April: while output in the important motor vehicle/vehicle parts sector expanded strongly by +4.2%, output declined in chemical products (1.8%), pharmaceutical products (-1.6%), electrical equipment (0.8%), metal products (-1.0%) and mechanical engineering (-0.5%). Production in the particularly energy-intensive industries was also down 0.9% in April compared to the previous month.

However, the less volatile two-month comparison shows growth in industrial goods (+0.6%), capital goods (+1.2%) and the energy-intensive sectors (+1.5%). In the construction industry, however, the favourable weather conditions at the beginning of the year dampened the usual seasonal recovery, resulting in a decline of 0.5%.

Despite slightly weaker growth in recent orders and output data, the brightened business sentiment among companies, purchasing managers and financial experts and the increasing impetus from foreign trade support the expectation of a gradual recovery in economic output over the rest of the year.

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^[1] Press release of the Federal Statistical Office of 7 April 2024. All figures are based on provisional data and have been adjusted for price, calendar day and seasonal factors (X13 JDemetra+ procedure).