Germany may be tipping into a recession amid a sharp drop in industrial production as many German firms faced difficulties completing orders due to supply chain snarls caused by ongoing pandemic restrictions and the Ukraine war.
Data released on May 6 by Germany’s Federal Statistics Office showed that industrial output fell 3.9 percent month-over-month in March, a number that’s nearly four times higher than the 1.0 percent drop economists expected.
“If you are in search of bad news, just have a look at German macro data. Industrial production just wrapped up an entire batch of expectedly weak March data,” ING’s Global Head of Macro, Carsten Brzeski, wrote in a note, adding that the data points to a looming recession in Europe’s biggest economy.
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