Bankinter : Industrial Production falls more than expected in March. The year-on-year rate remains positive On a month-on-month basis, Industrial Production fell by -3.4% in March versus -1.5% year-on-year and +2.1% year-on-year. On a year-on-year basis, it remains positive +1.8% from +0.7% year-on-year.
Assessment: The rapid rise in global interest rates is affecting the demand for industrial goods in Germany. The same trend was evident in Germany’s March Factory Orders data, which fell by -10.7% on the month. It seems that the cushion provided by order books built up during the pandemic – due to bottleneck problems in supply chains – has been consumed and the industrial sector is now facing a situation of lower demand.
