German industrial output weighed down by energy costs

accreditation
0:00
play article
Subscribers can listen to this article
Getty Images


German industrial production fell in August, official figures showed Friday, with energy-intensive sectors hit hard as Russian gas cuts exact a heavy toll on Europe's top economy.

The manufacturing sector, the pillar of the German economy, produced 0.8 percent less in August compared with the previous month, according to preliminary data from federal statistics agency Destatis.

Revised data showed that the sector registered zero percent growth in July, compared to the previous month.

Europe's economic powerhouse is being squeezed as energy prices soar after Russia shut off gas supplies amid tensions over the Ukraine war, and warnings are mounting of a looming recession.

In energy-intensive industries, such as chemicals or metals, production fell more sharply, dropping by 2.1 percent in August and by 8.6 percent since February.

Supply bottlenecks due to continued disruptions from the coronavirus pandemic and the Ukraine conflict still pose a problem for many manufacturers, Destatis said.

In a survey from the Ifo institute think-tank, 62 percent of industrial firms said they were affected by supply chain problems and issues with procuring raw materials.

Germany has been rushing to diversify its energy sources after the Russian gas shutdown, and last month announced a controversial 200-billion-euro fund to shield consumers and businesses from rising prices.


We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For 14 free days, you can have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today. Thereafter you will be billed R75 per month. You can cancel anytime and if you cancel within 14 days you won't be billed. 
Subscribe to News24
Rand - Dollar
17.36
-1.1%
Rand - Pound
21.29
-1.3%
Rand - Euro
18.29
-0.9%
Rand - Aus dollar
11.81
-1.5%
Rand - Yen
0.13
-1.2%
Gold
1,797.73
+0.5%
Silver
23.50
+1.9%
Palladium
1,963.22
+1.7%
Platinum
1,030.76
+2.1%
Brent Crude
76.15
-1.3%
Top 40
68,351
+0.1%
All Share
74,548
+0.1%
Resource 10
73,315
-0.7%
Industrial 25
92,605
+1.0%
Financial 15
15,401
-0.9%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders