German industrial output rises smaller-than-expected 0.7% in April -Breaking
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© Reuters. FILEPHOTO: Workers wear masks when they work at Volkswagen’s Wolfsburg assembly plant, Germany on April 27, 2020. Swen Pfoertner/Pool via REUTERS/File PhotoBERLIN (Reuters] – German industrial production rose in April, but less than anticipated due to pandemic restrictions in Ukraine and disruptions in supply chains. Official data was released Wednesday.
The Federal Statistics Office reported that industrial output rose 0.7% for the month following a 3.7% increase in March’s revisions.
A Reuters poll indicated that output rose 1.0% in April, according to a report.
Economy Ministry warns that there are still many uncertainties in the future, including war in Ukraine as well as higher prices for energy and raw materials. This could lead to shortages within industry.
Elmar Voelker, LBBW Bank analyst said that “after the abrupt setback in March as a direct reaction to the outbreak in war in Ukraine”, the recovery was a prudently positive sign.
Voelker stated that the current environment was still difficult and pointed to an unexpectedly sharper fall in industrial orders for April.
German industrial orders declined more than anticipated in April. This was the third consecutive decline. It was attributed to weakened demand, and increased uncertainty following the Russian invasion.
There are some chances of stability this summer, unless the Ukraine situation escalates. Voelker stated that the supply chain’s extremely tight state will continue to be a problem for the future.
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