Key facts
- German industrial production rose 0.4% in April.
- The increase was driven by new orders.
- Companies had previously stockpiled inventory due to anticipated higher energy prices.
- New orders have since collapsed, and energy prices are soaring.
German industrial production saw a slight rebound of 0.4% in April, marking the first increase this year. This uptick was primarily attributed to recent gains in new orders received by manufacturers. The boost followed a period where companies had strategically built up their inventory levels in anticipation of potentially higher energy prices, expected to result from the ongoing conflict in the Middle East. However, new orders have since collapsed, energy prices are soaring, and Europe's largest economy continues to struggle to find solid footing.