German Industrial Output Rises More Than Expected

Germany's industrial production rose 0.9% month-on-month in May 2026, surpassing market expectations and accelerating from April's revised 0.2% increase. This marked the strongest growth since September last year, driven mainly by a 3.6% jump in automotive production and a 0.9% increase in construction activity. Excluding energy and construction, industrial output rose 0.8%, as gains in capital goods (+1.3%) and consumer goods (+1.2%) production outweighed a 0.4% decline in intermediate goods. Outside industry, energy production increased 0.8%. Production in energy-intensive industries also rose 0.2% from the previous month and was 2.9% higher than a year earlier. On a less volatile three-month basis, industrial output edged up 0.1% in the March–May period compared with the prior three months. Compared with a year earlier, overall industrial production was unchanged, following a 0.9% decline in April.

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.