German Industrial Output Drops More Than Expected

Germany’s industrial production rose 0.4% month-on-month in April 2026, rebounding from a revised 0.1% decline in March and matching market expectations. This marked the first increase in four months, largely driven by stronger activity in construction (+2.4%), the chemical industry (+2.1%), and fabricated metal products, except machinery and equipment (+1.6%). In contrast, output in the automotive industry fell sharply by 4.7%. Excluding energy and construction, industrial production was unchanged from the previous month, as gains in intermediate goods (+1.4%) and consumer goods (+1.9%) offset a decline in capital goods production (-1.5%). Outside industry, energy production edged up 0.2%. On a less volatile three-month basis, industrial output declined 0.5% in the February–April period compared with the previous three months. On an annual basis, industrial production fell 0.5%, following a 3.4% drop in March.

Germany’s industrial output shrank 0.7% month-on-month in March 2026, following a downwardly revised 0.5% decline in the previous month and missing market expectations for a 0.5% increase. The drop was mainly driven by weaker energy production (-4.0%) and a decline in mechanical engineering output (-2.7%). In contrast, activity improved in construction (1.9%) and the automotive industry (1.9%). Excluding energy and construction, industrial production declined 0.9%, reflecting lower output of capital goods (-1.6%) and consumer goods (-1.9%), while intermediate goods production rose 0.8%. On a less volatile three-month basis, industrial activity contracted 1.2% in the January–March period compared with the previous three months. On an annual basis, industrial production dropped 2.8%, sharply worsening from a 0.2% decline in February and marking the steepest pace since August 2025.

Germany’s industrial output declined 0.3% mom in February 2026, reversing an upwardly revised flat reading in the previous month and missing market expectations for a 0.9% rise. The drop was driven by lower activity in construction (-1.2%), computer, electronic and optical products (-3.9%), and pharmaceuticals (-4.4%), while the automotive sector provided some support with a 1.7% increase. Excluding energy and construction, output edged down 0.1%, as a fall in consumer goods production (-1.5%) outweighed gains in intermediate (0.4%) and capital goods (0.1%). In the less volatile three-month comparison, industrial activity slipped 0.4% from December to February. On an annual basis, production was flat, following a 0.9% contraction in January.