Germany: does good industrial production provoke envious people? – VP Bank column

Industrial production increased by 3.2% in October compared to the previous month. This is the sixth increase in a row. The industry is starting the final quarter of 2020 very well. The plus is extremely strong. That is an edifying signal for the economy as a whole. The loss of sales in the retail sector can be partially compensated with a good development in the industry. Since incoming orders for the manufacturing industry have increased in the past few months, production will continue to record positive growth rates. The decline in gross domestic product in the fourth quarter will therefore be less pronounced than in neighboring European countries.

But the good production figures come in the midst of a heated mood about the benefits of the current partial lockdown in Germany. Representatives of the hard-hit service sector can use the data on industrial production to draw attention to the unequal distribution of the burden. Especially since the current partial lockdown does not have the desired positive effects on the number of new infections. Tough containment measures in the new year cannot therefore be ruled out. In this case, industry would also be more affected, as production in many companies would then probably also come to a standstill.


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