German industrial production recovers after slump on Russia-Ukraine conflict
Published: Jun 09, 2022 08:11 AM
German industrial production recovered slightly in April following a slump caused by the Russia-Ukraine conflict, according to preliminary figures released on Wednesday by the Federal Statistical Office (Destatis).

After falling 3.7 percent month-on-month in March -- the sharpest drop since the start of the COVID-19 pandemic -- industrial production rose by 0.7 percent in April.

However, production levels were still dampened by the conflict as Germany was "disproportionately affected by the trade sanctions against Russia," the Ministry for Economic Affairs and Climate Action said in a statement.

The value of incoming orders for industry in Germany continued to be higher than that of sales. "The excess demand is likely to be due to the continuing acute shortage of intermediate products," Destatis noted. Many companies were still facing problems filling new orders as a result.

According to the Munich-based ifo Institute, more than three out of four German companies complained of bottlenecks or problems in the procurement of intermediate products and raw materials in May.

Industrial output in Europe also declined after the start of the Russia-Ukraine conflict, albeit less sharply than in Germany. In the eurozone, production in March fell by 1.8 percent month-on-month and in the European Union (EU) by 1.2 percent, according to the Eurostat, the statistical office of the EU.