German industrial production in August plunged more than expected, data shows

ISTANBUL

Industrial output in Germany dropped 4.3% on a monthly basis in August, much above market expectations, according to the country’s statistical authority data released on Wednesday.

The decline reversed July's 1.3% monthly rise, Destatis data showed, while the market forecast was a 1% fall for August's figure.

The downturn was mainly led by a major drop in the automotive industry, Germany's largest industrial branch, which dropped 18.5% on a monthly basis.

"The marked decrease may be explained, at least in part, by the combination of annual plant closures for holidays and production changeovers," Destatis said.

The manufacture of machinery and equipment and the pharmaceutical industry also saw declines in August, with 6.2% and 10.3%, respectively.

Additionally, a 6.1% decline in the manufacture of computer, electronic and optical products also had a negative impact on the overall production.

In August, production in industry, excluding energy and construction, was down 5.6% on a monthly basis.

"Within industry, decreases were reported in all three major groups, with the production of capital goods declining by 9.6%, consumer goods production dropping by 4.7% and intermediate goods production down 0.2%. Outside industry, energy production decreased by 0.5% and production in construction was up 0.6%," it noted.

Compared with August 2024, production in industry, excluding energy and construction, was down 5.1% in August 2025.

On an annual basis, Germany's overall industrial output declined 3.9% in August.