German industrial output plunges in December

German industrial production plunged in December, official figures showed Tuesday, as an energy crisis triggered by the Ukraine war took its toll on Europe’s top economy.

Output fell 3.1 per cent on the previous month, more sharply than expected, according to preliminary data from federal statistics agency Destatis.

Updated figures showed that production rose 0.4 per cent month-on-month in November.

The figures showed that “the expected winter economic slowdown” was occurring, the economy ministry said in a statement.

“In particular, energy-intensive sectors cut back their production.”

Sectors such as chemical and paper production declined sharply, the ministry said.

For the whole of 2022, industrial output was 0.6 per cent lower than the previous year, Destatis said. 

Moscow’s invasion of Ukraine and subsequent move to slash crucial gas exports has hit Germany’s export-oriented economy hard, as manufacturers had long relied on cheap Russian energy imports.

Berlin has rolled out relief measures, including a cap on energy prices, that have helped to blunt the crisis.