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German Manufacturers Expect Production Levels to Fall Further in the Next Three Months

German manufacturing expects production levels to fall further in the next three months, but at a slower pace than before, the Ifo Institute said on June 8. The Ifo production expectations index rose to -20.4 in May from -51 in April. Klaus Wohlrabe, head of ifo investigations, points out that while this is the biggest monthly gain since German reunification, it only means the decline has flattened.

The only sign of optimism came from the auto industry, where the index rose to 23 points from -41 in April. Drugmakers expect production to fall slightly, with the index dropping to -3 from 14. The clothing industry remains very pessimistic, with production expectations falling from -72 to -88.

The leather and footwear manufacturer's production expectations index rose sharply to -27 points from -97. Beverage producers expect the index to rise from -78 to -26. Furniture manufacturers' production expectations rose from -76 to -31. The textile manufacturer's production expectations index rose to -33 points from -68.

The metal production and processing and metal product manufacturing industry is expected to rise to -36 points in May, electrical equipment manufacturers are expected to be -34 points, mechanical engineering is expected to be -33 points, chemical and printing products manufacturers are expected to be -20 points, food and feed manufacturers are expected to be -5 points.

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