German Industrial Output Rises Most in 17 Months

Germany’s industrial production rose 2.0% month-on-month in August 2026, exceeding market forecasts for a 0.5% increase and rebounding from a revised 1.2% drop in July. This marked the strongest growth since March 2025, mainly driven by a 9.3% advance in the construction sector, with increases in specialized construction and finishing trades (13.1%) and mechanical engineering (5.3%). Excluding energy and construction, industrial output grew 0.6%, with increases in capital goods (1.2%) and consumer goods (0.6%). In contrast, the automotive industry declined 5.4%, weighed down by standard factory shutdowns, while energy output fell 0.4%. Production in energy-intensive industrial sectors fell 0.5% from July. On a less volatile three-month basis, industrial output edged up 0.4% in the June–August period from the previous three months. Compared with a year earlier, industrial production climbed 2.3%, recovering from a 1.8% fall in July.

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.