German industry expects a slight increase in production in the coming months. The corresponding ifo indicator rose to plus 15.4 points in August, up from plus 14.3 in July. "Little by little, the engine of the German economy, industry, is getting going again," says Klaus Wohlrabe, head of the ifo surveys.
For the first time in a good year, mechanical engineering companies are expecting their production to expand again. The index rose to plus 3 points, after minus 12 in July. Expectations in metal production and processing are also positive for the first time in almost two years at plus 5 points, compared to minus 11 in July.
Automotive companies continue to expect an increase in production, but are no longer quite as optimistic as in the previous month: the indicator fell slightly to plus 48 points, compared to plus 49 in July. Furniture manufacturers reported an improved outlook with 19 points, compared to 7 in July, and manufacturers of data processing equipment with 12 points, compared to plus 1 point in July.
In the chemical and pharmaceutical sectors, the values remained unchanged at 19 and 22 points respectively.
Manufacturers of leather, leather goods and shoes are still waiting for a recovery. The production index fell drastically to minus 56 points, after minus 19 in July. Expectations in the textile and clothing industry deteriorated again after an interim high in July. The indicator fell to minus 10 and minus 15 points in August. The indicator for beverage manufacturers fell to plus 2 points, after plus 28 in July.
The Federal Statistical Office will publish its figures for industrial production in July this Monday.
