German Industrial Output Unexpectedly Falls

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.

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.