German industry sinks under the blows of the coronavirus pandemic. After the sharp drop in production (-8,9%) recorded in March, the collapse came in April. Last month, according to data released by the Federal Statistical Office, German industrial production fell by 17,9%, experiencing “its biggest decline since the series began in January 1991″, commented Destatis. On an annual basis, the decline in industrial production is 25,3%.
The figure excluding energy and construction records a contraction of 22,1%. Energy production fell by 7,2%, while that in construction fell by 4,1%. However, it was the auto sector that suffered the most, which recorded a real collapse, falling by 74% in April. A percentage that rekindles the controversy over the 130 billion euro maxi plan launched by Angela Merkel a few days ago.
The maneuver in fact limits the incentives (6,7 billion euros) to the electric car and the installation of vehicle recharging columns, excluding traditional low-pollution engines despite the fact that for days the chancellor's party (the CDU) has asked that interventions not be limited to electric vehicles, but cover theentire automotive sector, which has always been fundamental to the German economy.
The data on industrial production pushes the Frankfurt Stock Exchange downwards which in mid-morning dropped 0,78%, putting an end to the rally achieved from 1 to 5 June, a period in which all the lists of the old continent, with the exception of London, gained almost 11% The other Stock Exchanges also slow down: Paris (-0,6%), London -0,3%). Instead, Piazza Affari is saved which, driven by banks and oil companies, rises by 0,57% to 20.302 points. Madrid also performed well (+0,3%).
