German Industrial Output Unexpectedly Falls

Germany’s industrial production dropped 1.1% mom in July 2026, missing market forecasts for a 0.1% increase and reversing from a downwardly revised stagnation in June. It was the fourth monthly decline so far this year, mainly driven by a 9.2% plunge in automotive production following weeks of production shutdowns. Excluding energy and construction, industrial output fell 2.2%, with declines across capital goods (-3.4%), consumer goods (-2.2%), and intermediate goods (-0.2%). In contrast, energy production rose 4.7%, lifted by higher electricity generation from wind and photovoltaics, while construction output rose 0.9%. Production in energy-intensive industrial sectors fell 1.7% from June. On a less volatile three-month basis, industrial output edged up 0.4% in the May–July period from the previous three months. Compared with a year earlier, industrial production shrank 1.6%, deepening from a 0.5% fall in June and highlighting continued weakness in Germany’s manufacturing sector.

Germany's industrial production rose 0.2% month-on-month in June 2026, slightly higher than market expectations of 0.1% but slowing from a revised 0.7% increase in May. Even so, output extended its growth for a third straight month, driven mainly by a 3.6% jump in automotive production and an 8.4% surge in the manufacture of other transport equipment, while machinery and equipment production fell 3.9%. Excluding energy and construction, industrial output was unchanged, as gains in consumer goods (+1.0%) and capital goods (+0.2%) offset a 0.9% decline in intermediate goods. Outside industry, energy production increased 1.9%, while construction output rose 0.1%. Production in energy-intensive industrial branches declined 1.8% from the previous month. On a less volatile three-month basis, industrial output rose 0.7% in the April–June period compared with the previous three months. Compared with a year earlier, overall industrial production fell 0.1% in June, following no change in May.

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.