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Substantial Contraction of German Industrial Output

The EU Commission has called for gas consumption cuts in the range of 15 percent for this coming winter. But Germany is already saving almost as much. 14.3 percent less gas was consumed between January and May compared with the previous year, according to the German Association of Energy and Water Industries (BDEW). On the one hand, this was occasioned by the comparatively mild weather. However, an analysis also shows that industry in particular has exploited savings potential.

According to BDEW, the decline in gas consumption was particularly strong in May. There, at 44.5 billion kilowatt hours, it was “more than a third lower than in May 2021.” If the high temperatures this year are included, consumption is still a tenth below the same month last year.

The reality behind these saving operations is a reduction in production: according to figures from a poll done by the DIHK (national umbrella organization of the industry) among 3,500 enterprises, output (and the respective employment) is being cut already by 16 percent of enterprises, in energy-intensive branches even by 32 percent of them.

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