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Dow Jones Newswires: German industry contracted in August, energy intensive branches particularly hurt

Germany’s industrial production fell in August as demand for goods moderated and factories grappled with high energy prices and supply bottlenecks.

Total industrial output–comprising production in manufacturing, energy and construction–decreased 0.8% on month in August, data from the German statistics office Destatis showed Friday. Economists polled by The Wall Street Journal had expected a 0.5% decline.

In July, industrial production remained flat, instead of decreasing 0.3% as the first estimate showed.

On an annual basis, industrial output increased 2.1%, Destatis said.

Production in manufacturing declined by 0.1% on month, energy production decreased 6.1% and construction output fell 2.1%, the data showed. In the energy-intensive industrial branches, production declined by 2.1% in August compared with July, a much larger decrease than in industry as a whole, according to the German statistics office.

Production is still affected by the extreme shortage of intermediate products, Destatis said. In an Ifo Institute survey, 62% of enterprises complained of bottlenecks and problems in procuring intermediate products and raw materials in August.

Germany’s industrial sector faces pressure from cooling demand, with new orders for factories declining for seventh consecutive months.

Write to Maria Martinez at maria.martinez@wsj.com

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