Manufacturing growth pace slows down.
In the final month of a challenging year, the manufacturing sector in Germany showed a mixed performance. While some sectors experienced growth, others faced a temporary slowdown.
According to the latest data, the real turnover in manufacturing was 1.9% higher in December 2020 compared to the previous month. This increase was primarily driven by the consumer goods sector, where orders rose by 6.4%. However, the producers of capital goods experienced a decline of 4.6% in orders during the same period.
Orders from the Eurozone decreased by 7.5% in December, while orders from the rest of the world increased by 0.5%. This suggests that the slowdown in the Eurozone may have been offset by growth in other international markets.
The real order intake in December 2020 was 1.9% lower than in November but 6.4% higher than in December 2019. This indicates a recovery from the previous year, despite the monthly decrease.
The growth in December followed seven consecutive months of increases, but the sector experienced a temporary slowdown due to the ongoing pandemic. Compared to February 2020, the month before the start of restrictions in Germany, turnover in December 2020 was 1.8% lower, adjusted for season and calendar effects. However, order intake in December was 2.6% higher compared to February 2020, offering a glimmer of hope for the sector's recovery.
In the entire year 2020, turnover in manufacturing was 10.1% lower than in the previous year, adjusted for calendar effects. Similarly, the order intake in manufacturing was 7.2% lower than in the previous year. The order intake for producers of capital goods decreased by 4.6% in December compared to the same month in the previous year.
Domestic orders decreased by 0.9% in December compared to the previous month, while foreign orders decreased by 2.6%. However, orders for producers of intermediate goods were 0.8% higher than the previous month.
It is important to note that there is no verifiable public information that identifies specific companies from countries within the Eurozone that caused the 7.5% drop in orders for goods production in December 2020.
As we move into 2021, the manufacturing sector will continue to face challenges, but the signs of recovery, particularly in the consumer goods sector, offer a positive outlook for the coming months.
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