BERLIN (Reuters] – German industrial production fell in December as supply chain bottlenecks, and a decline in construction, hampered Europe’s biggest economy.

According to the Federal Statistics Office, the nation’s industrial output declined by 0.3% after a revised 0.3% increase in November.

According to Reuters, December saw a 0.4% increase.

The office reported that 2021’s production was 3.0% greater than 2020, and 5.5% higher than it was in pre-crisis 2019,

Germany’s GDP grew 2.8% last year compared with France’s 7%. The weakness of Germany in the supply chain bottlenecks that are holding its manufacturing sector back from exporting, exposed Germany as vulnerable.

Germany is known as Europe’s economic engine. But, in response to the Fourth COVID-19 Wave and the disruptions in supply chains, there was a 0.7% contraction for the fourth quarter.

There are signs that 2022 will be a better year.

According to a survey, Germany’s manufacturing industry grew in January for the first six months. The reason was that producers were able to increase output to meet increased demand.

German businesses were more optimistic in January than they had been in seven years. The improvement of supply chain bottlenecks and improved business mood made it possible for them to see a bright future. They also saw the potential for a stronger recovery from this spring’s coronavirus pandemic.

According to Automobilwoche, another encouraging sign was that Porsche AG sales chief said that he expects another record year of sales, even with the worldwide shortage in semiconductor chips.

German officials cut their economic growth projections for 2022 from 3.6% to 3.6% last month. Robert Habeck from the Economy Ministry said last month that he anticipates a slowerdown to 2.3% by 2023.