The production of German industry fell by 3.5 percent in December compared to a month earlier. The German Federal Statistical Office reported this. It is the strongest decline since the beginning of 2009.

Economists expected on average a contraction of industrial production in Europe’s largest economy by 0.2 percent. In November, industrial production in Germany increased by a revised 1.2 percent.

Production fell sharply, particularly in the construction sector, partly due to the Christmas holidays. But minuses were also seen in the production of capital and consumer goods.

Bad year

On Thursday it was announced that German factory orders had fallen sharply in December, with 2.1 percent on a monthly basis. The industry in Germany continues to suffer from trade tensions, the weakening world economy and troubles in the car industry of the country.

ING economist Carsten Brzeski says German industry has had a bad year. New figures about the German economy will be released next week. Brzeski says it would be a positive surprise if it turns out that no contraction of the German economy is recorded in the fourth quarter.

Meanwhile in France

Production in French industry decreased by 2.8 percent on a monthly basis in December. The French statistical office said so. Economists had generally expected a contraction of 0.3 percent.

In November, industrial production in France grew by 0.3 percent.