German Industrial Output Unexpectedly Rises

Germany’s industrial production rose 0.7% month-on-month in September 2026, beating expectations for no change but slowing from a downwardly revised 1.0% increase in August. The growth in September was primarily driven by a 17.1% increase in automotive production, which had been subdued in the previous two months partly due to production changeovers and factory holidays. Pharmaceutical output also rebounded (8.0%). However, these gains were partly offset by a 2.6% drop in construction output, while production for machinery and equipment fell 6.5%, reversing a 5.8% rise in August. Excluding energy and construction, industrial output was up 1.7%, with increases across capital goods (3.0%), consumer goods (0.8%) and intermediate goods (0.1%). Outside of industry, energy production decreased 1.2%. Meanwhile, production in energy-intensive industrial branches rose 0.8%. On a yearly basis, industrial production increased 0.4%, following a downwardly revised 0.7% rise in August.

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.