German Industrial Output Unexpectedly Falls

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.

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.