German Industrial Output Unexpectedly Rises

Germany’s industrial output decreased 0.5% month-on-month in January 2026, easing from a downwardly revised 1.0% fall in the previous month but against market expectations of a 0.9% rise. This marked the second consecutive monthly drop, primarily due to lower output for fabricated metal products, except machinery and equipment (-12.4%), pharmaceutical products (-11.9%), and computer, electronic and optical products (-6.8%). However, these declines were partly offset by an increase in energy production (10.3%), linked to colder temperature during the month. Construction output also went up (2.9%). Excluding energy and construction, industrial output fell 2.5%, amid decreases in the production of consumer goods (-4.2%), intermediate goods (-2.6%), and capital goods (-1.6%). In the less volatile three-month comparison, activity from November to January rose 0.9%. On an annual basis, industrial production declined 1.2%, following a revised 0.4% gain in December.

Germany’s industrial output declined 1.9% month-on-month in December 2025, reversing a downwardly revised 0.2% rise in November and worse than market expectations of a 0.3% fall. This was the first monthly drop in four months, mainly due to lower output in the automotive industry (-8.9%), machinery and equipment (-6.8%), and machine maintenance and assembly (-17.6%). These declines, however, were partially offset by gains in fabricated metal products (+3.2%) and other transport equipment (+10.5%). Construction output also increased (+3%). Excluding energy and construction, industrial output dropped 3%, dragged by lower production in capital goods (-5.3%) and intermediate goods (-1.2%), while output in consumer goods rose (+0.5%). In the less volatile three-month comparison, activity from October to December was 0.9% higher than in the previous three months. On an annual basis, industrial output fell 0.6%, following a downwardly revised 0.5% gain in November.

Germany’s industrial output rose 0.8% month on month in November 2025, easing from a revised 2.0% increase in October and beating forecasts of a 0.4% decline. The sustained growth was driven mainly by a sharp rebound in the automotive sector (+7.8%) and gains in mechanical engineering (+3.2%) and machine maintenance and assembly (+10.5%). However, these were partly offset by a steep fall in energy production (-7.8%). Industrial production excluding energy and construction rose 2.1%, supported by capital goods (+4.9%), while continued contractions in intermediate goods (-0.8%) and consumer goods (-0.3%) weighed on overall momentum. Construction output also fell 0.8%. In the less volatile three-month comparison, activity from September to November was 0.7% higher than in the preceding three months. On an annual basis, total industrial production rose 0.8%, following a 1.0% increase in the previous period.