German Industrial Production Plunges Most Since 2009

Tyler Durden's picture

Just day after President Trump suggests Germany is a currency manipulator, and as Merkel looks set to lose her Chancellorship, Europe's powerhouse economy just collapsed in December. Industrial production plunged 3.0% MoM in December - the biggest drop since Jan 2009 and over 8 standard deviations below expectations.

As Boomberg details, the figure excluding construction, which is comparable to the industrial production data reported by Eurostat, declined by an even greater 3.1%. The contraction was largely driven by capital goods, which subtracted 2 percentage points from the headline figure.



However, the losses were somewhat broad-based -- the categories of non-durable consumer goods, intermediate goods and energy all subtracted from the headline figure.


For some context, this was 8 standard deviations below market expectations of a 0.3% rise...


The contraction in December will leave industry’s impact on 4Q GDP growth close to neutral. Germany is the first of the euro area’s four largest economies to report industrial production data for December.

Furthermore, Europe’s largest economy, the region’s growth driver, faces a series of risks that may damp output in the coming months. Protectionist trade policies under the new U.S. administration and complicated negotiations about the U.K.’s post-Brexit relationship with the European Union threaten to weigh on sentiment, just as a national election in September pits Chancellor Angela Merkel’s ruling party against a strengthening populist movement.

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NoWayJose's picture

Plunges with a very weak Euro? Sure....

And the Patriots will win the Super Bowl after being down by 25 points. Sure...

Sounds more like a warning to Draghi to not taper his QE!

GUS100CORRINA's picture



Immigration problems look to be weighing on the PHYCHE of the GERMAN PEOPLE.


Germans will probably blame POOR GERMAN ECONOMY on TRUMP!!!!

monk27's picture

It's the economy (as always) plus the savage migrants... I would say it's twice the trouble.

CheapBastard's picture

Middle class people are flooding out of Germany to other areas of Europe and elsewhere. I read of two chinese families that moved back to China because of the muslim gang attacks on their daughters.

These 9th circuit judges, like the media, are either clueless or intentionally ignoring the danger and violent crime from these refugees. We even see the media here ignore the violence from Hillary's people against innocent bystanders and trump supporters so you can be sure they will try to cover up or distort attacks by refugees.

You don't see this on cnn or npr:


Family of Murdered Woman Sues San Francisco over ‘Sanctuary City’ Policy The family of Kathryn Steinle filed a federal lawsuit on Friday against San Francisco and other government agencies — just days after the city re-affirmed its “sanctuary city” policy to shelter illegal aliens, including criminals, from deportation.

The 32-year-old Steinle was walking with her father on San Francisco’s Pier 14 last July 1 when she was shot and killed by an illegal alien, Juan Francisco Lopez-Sanchez, who had already been convicted of seven felonies and deported five times to Mexico.

shamus001's picture

Isnt this report from December, prior to Trump taking office (1 month later?) - they love to blame their failed experiments on U.S.?

shamus001's picture

Isnt this report from December, prior to Trump taking office (1 month later?) - they love to blame their failed experiments on U.S.?

aliens is here's picture

Germans will replace Merkel with someone just as bad.

sinbad2's picture

America will replace Merkel with someone just as bad.

cossack55's picture

They need to start building more tanks since the Russkies are on Berlin's doorstep.  

bankbob's picture

Correct.  The EU has more people and a much stronger economy.  Germany, France and Sweden must rearm. The USA is disengaging.

niemand's picture

wir schaffen das..nicht

Resistance Is Hope's picture

Who would have thought importing worthless welfare leech fundamentalist Muslims by the millions would damage Germany's economy?

deport, deport, deport, deport, deport, deport, deport deport deport deport deport deport deport deport deport deport deport deport deport deport deport deport deport deport deport deport deport deport deport deport deport deport deport deport deport deport deport deport deport deport deport.

gatorengineer's picture

Probably nothing..... wait till the euro drops....

Greenspazm's picture

Those 100 000 s of imported naggers and muzzies tooling around the big cities evidently aren't spending enough.

SomethingSomethingDarkSide's picture

Or working.. or following the laws..

mofreedom's picture

Sorry Germany, yoour knives just last too long.

ali-ali-al-qomfri's picture

this is only proof the razor blade market has officially collapsed.

migrants ain't shaving.

Wir Shaven Das!

mofreedom's picture

Blame it too on the Dollar Shave Club, made in China and So Ko.

aliens is here's picture

Prepare for a another war started by the Krauts.

1.21 jigawatts's picture

Who needs industrial production when you have magical central bank Jews who can poop money into existence?

bankbob's picture

Germany is in a demographic spiral. Their biggest generation is about to retire and quit paying taxes. Because of their declining population they will never see consumer spending growth in our lifetime.

The only way Germany can continue is to continue exporting to the USA and China.  Without those two markets, German industry is dead.

Now, add on the fact that Germans have spent a trillion euro to unsuccessfully convert to green energy.  And, electricity rates have tripled or quadrupled.  How the Hell are you supposed to run a factory in Germany now?

ExpertiseAsia's picture

Germany isn't well placed at all... Take a look at Asia's morning piece here.

sinbad2's picture

The sanctions against Germany, err Russia are starting to take their toll.