In April industrial production in Germany decreased with 2.2% from March, showing the economy’s ability to fight the eurozone debt crisis.
The production of capital goods saw a decline of 3.6% and the production of consumer goods dropped 3.7%. The decrease followed a 2.2% month-on-month gain in March, from the initial target of 2.8%. Still the Economy Ministry said that the industrial production is considered ‘very robust’ and that the fall was due to the fact that April 30th, the day before the May Day holiday, fell on Monday and so many people took the day off.
“The German economy’s immunity against the eurozone sovereign debt crisis is clearly fading away. Even if it will not fall, the eurozone’s last stronghold is faltering,” said Carsten Brzeski, an economist at ING in Brussels. “For the time being, it is a stabilization at a high level. However, latest data clearly indicate that Germany is not an economic island.”
Industrial production decreased 0.7% in April in year-on-year terms, after a 1.4 increase in March. Until now Germany hasn’t been affected by Europe’s debt crisis, and the quarter-on-quarter growth of 0.5% in this country in the January-March period was what helped Germany avoid the recession.