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Production plans in Germany deteriorated in December, with the Ifo production expectations index dropping to 4.5, down from the 5.6 seen in November. The picture is mixed across sectors. Production expectations declined in the pharmaceutical industry as well as in the automotive sector, while manufacturers for leather and related products are more pessimistic. The lowest indicator level is in the clothing industry where production expectations plunged to -40.
Against that, furniture producers see rising production, as do computer manufacturers. Beverage and food producers are still holding back on planned production cutbacks.
"While the picture is very different across different industries, plans to curtail production are few on the ground," says ifo expert Klaus Wohlrabe.