BERLIN, June 8 (Xinhua) -- Production expectations of German manufacturers were still high but deteriorated somewhat as the corresponding indicator fell from 32 points in April to 27 points in May, according to a business survey published by the ifo Institute on Tuesday.
For the first time in nine months, clothing manufacturers in Germany planned to expand production as the ifo indicator rose from minus 15 points in April to plus 20 points in May. A figure above zero represents growth, while below zero represents a decline in production.
The electrical and electronics industries in Germany continued to expect "significant production increases," the ifo Institute noted. In the automotive sector, however, the indicator dropped from 42 points in April to 10 points in May, which was also due to problems with the supply of chips.
"The picture is very different across different industries," said ifo expert Klaus Wohlrabe in a statement. "The automotive industry and its suppliers are significantly scaling back their expectations, but continue to anticipate production increases."
The Federal Statistical Office (Destatis) announced on Tuesday that production in Germany's industry in April increased by 26.4 percent year-on-year (price and calendar adjusted). In April 2020, companies had "reduced, or temporarily stopped production" due to the COVID-19 crisis.
Compared to pre-crisis levels before restrictions were imposed in Germany due to the coronavirus pandemic, production in April was still 5.6 percent lower in seasonally and calendar-adjusted terms, according to Destatis.
The Ministry for Economic Affairs and Energy (BMWi) said on Tuesday that the "positive development" of the ifo business climate index and the order intake, which remained stable at a high level, "nevertheless provide a positive outlook for industry in the coming months." Enditem
