• 4 minutes Energy Armageddon
  • 6 minutes How Far Have We Really Gotten With Alternative Energy
  • 10 minutes Wind droughts
  • 2 days "Biden Is Running U.S. Energy Security Into The Ground" by Irina Slav
  • 1 day "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 1 day "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 1 day Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 8 days "Forget Oil, The Real Crisis Is Diesel Inventories: The US Has Just 25 Days Left" by Zero Hedge - 5 Stars *****
  • 1 day The Federal Reserve and Money...Aspects which are not widely known
  • 5 days Is Europe heading for winter of discontent with extensive gas shortages?
  • 1 day "Europe’s Energy Crisis Has Ended Its Era Of Abundance" by Irina Slav
  • 1 day "Dodgy Demand Data? The Oil Price Collapse Conspiracy" by Alex Kimani
  • 8 days "The Global Digital ID Prison" by James Corbett of CorbettReport.com
  • 9 days Goldman Betting on Cryptocurrencies
  • 12 days Сryptocurrency predictions

Germany’s Industrial Output Drops As Energy Prices Soar

Germany’s industrial production fell by 0.8% in August compared to July, amid a significant drop in output at energy-intensive industries, the German Federal Statistical Office said on Friday.

In the energy-intensive industrial branches, production fell by 2.1% in August 2022 compared with the previous month—a much steeper drop than the overall industrial production decline, the office said.

Production in the energy-intensive industrial branches in Germany has dropped by 8.6% since February 2022, the data showed.

Apart from the high energy prices, which have forced energy-intensive industries to curtail production or shut down factories, industrial production in Germany is still affected by the extreme shortage of intermediate products, the statistics office said. Supply chains are interrupted due to the Russian invasion of Ukraine, and some continue to recover from the COVID-related delays.

“Germany continues to descend into recession,” ING said today, commenting on the latest industrial production and retail sales data.

“German industry and the entire economy have not come to an abrupt stop but are rather in the middle of a long and gradual slide into recession,” said Carsten Brzeski, Global Head of Macro at ING.

“We don’t need a crystal ball to see a further weakening of German industry in the coming months. The full impact of higher energy prices will only be felt in the last months of the year. It is not only the price effect putting a burden on German industry but also the lack of industrial input goods (including industrial gas),” Brzeski added.

Last month, Bundesbank, the central bank of Germany, said signs were mounting that the German economy was slipping into a recession, which would deepen as we head into the winter months amid the ongoing natural gas and energy crisis. Economists at Bundesbank now expect a broad-based and longer-lasting decline in German economic activity.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:

Join the discussion | Back to homepage

Leave a comment
  • Mamdouh Salameh on October 07 2022 said:
    Not only Germany but also the EU are fast descending into recession because of staggering energy prices and extreme shortages of intermediate products.

    They are paying a crippling price for letting themselves being led into a war provoked by the United States against Russia. Moreover, their supposed ally is milking them by charging the highest prices in the market for its LNG supplies. The EU doesn't even have the courage to tell the US that it is exploiting it.

    When the Ukraine conflict is eventually settled, the EU will emerge the largest loser.

    Dr Mamdouh G Salameh
    International Oil Economist
    Visiting Professor of Energy Economics at ESCP Europe Business School, London

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News