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German Energy-Intensive Industries Remain In Crisis

ENERGY

Energy-intensive industries, from chemicals to metals fabrication, remain in crisis after the industrial production index ticked 1.0% M/M higher in June, this area pulled back 0.6% in July and production sits 18% below end-2021 levels and 3% below pandemic lows.

  • The July IP came in at 0.8% M/M (-0.4% survey, -1.4% prior) and -2.1% Y/Y (in line with survey, -1.5% prior). This was the third straight month of decline.
  • Latest Bnetza data showed a 5.57% month on month increase in German industrial gas demand in August, however, consumption remains well below the 2018-2021 average.

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