2026.02.0607:13:04UTC+00German Industrial Output Falls More than Expected

Germany's industrial production experienced a downturn of 1.9% in December 2025, on a month-to-month basis, contrasting with a revised 0.2% increase in November and defying market forecasts of a 0.3% decrease. This marks the first monthly decline in four months, largely attributed to reduced output in the automotive sector (-8.9%), machinery and equipment (-6.8%), and machine maintenance and assembly (-17.6%). These setbacks, however, were somewhat balanced by growth in fabricated metal products (+3.2%) and other transport equipment (+10.5%). Additionally, there was a notable increase in construction output (+3%). When energy and construction are excluded, industrial production saw a 3% decline, primarily driven by reduced production in capital goods (-5.3%) and intermediate goods (-1.2%), while consumer goods output rose by 0.5%. Over a more stable three-month period, activity from October to December was 0.9% higher compared to the preceding three months. On a year-over-year basis, industrial production slipped by 0.6%, following a revised 0.5% increase in November.