BERLIN (Reuters – German industrial output fell in March due to pandemic restrictions in Ukraine and the war in Ukraine, which made it more difficult for orders to be filled, according Friday’s official data.

According to the Federal Statistics Office, industrial output decreased 3.9% in March after an upwardly revised 0.1% increase in February. According to Reuters, March saw a 1.0% drop.

According to it, the sharpest decline occurred in April 2020 at the start of the coronavirus crises.

Joerg Kraemer, chief economist at Commerzbank ETR:, stated that the German economy will likely stagnate in the 2nd quarter due to weakening industry, even with the lifting of pandemic restrictions.

Jens Oliver Niklasch, economist at LBBW said that “the economic environment continues to be exceptionally challenging.”

Niklasch stated that high raw material costs and supply disruptions make it hard for industries to do business. Inflation and war are weighing on the demand side.

According to statistics, the output of industry, which excludes energy and construction, fell 4.6% in March.

In March, industrial companies saw 4.7% decreases in their orders. It was the largest monthly drop since October. The reason for this is largely due to lower orders from overseas.