Bavarian industry still with negative economic growth in June, but recovered significantly
08.17.2020 13:06 Economy
The Bavarian State Office for Statistics recorded a clear upward trend in June. Compared to the same months in 2019, sales and orders are down by 4.2 percent and 5.5 percent, respectively. However, the negative growth is significantly lower compared to the months April and May 2020.
The Bavarian industry sector has improved significantly after heavy, corona-related sales loses in the previous months (April -34.7 percent; May: -34.1 percent). Despite a general recovery, sale of the manufacturing industry in Bavaria showed contrasting developments in its individual branches in June 2020. “Mechanical engineering” (+23.2 percent) and pharmaceuticals manufacturers (+22.1 percent) managed to increase sales compared to the same month last year. The apparel manufacturers (-22.9 percent) and the metal processing- and manufacturing sector (-22.1 percent) on the other hand faced high declines in sales. Bavaria’s important automotive and vehicle parts sector only faced a negative economic growth of 12.6 percent (April: -62.0 percent; May: -57.6 percent).
The Bavarian industry had to post an overall drop in sales of 15.1 percent in the first half of the year compared to the previous year. According to the State Office for Statistics the foreign turnover for June faced a negative economic growth of 4.9 percent to 15.6 billion Euros. The export rate was 56.1 percent. Sales with euro zone countries fell by 11.3 percent and their share of the total sales amounted to 18.3 percent.
The demand for goods in the manufacturing sector, adjusted for price, fell by 5.5 percent in June 2020 compared to the same month last year. A recovery is evident here too. After massive losses in the previous months (April -37.2 percent; May-38.7 percent). Order intakes from Germany, with an increase of 25.0 percent, were even well above the level of the same month last year. Those from abroad however fell by 19.9 percent.