German industrial output falls unexpectedly in July

Key facts

• German industrial production decreased by 1.1% in July.
• The automotive sector saw a 9.2% decline in production.
• Analysts had forecast a 0.1% rise in industrial output.
• Over the May-July period, industrial production was 0.4% higher than the preceding three months.
• Industrial orders increased by 2.5% in July.

German industrial production experienced an unexpected decline of 1.1% in July compared to the previous month, according to data from the federal statistics office. This downturn contrasts with analysts' predictions of a 0.1% rise. The primary driver for this decrease was a sharp 9.2% drop in production within the automotive industry, attributed by the German Automotive Association VDA to multi-week production shutdowns.

Despite the monthly fall, a less volatile three-month comparison showed industrial production was 0.4% higher from May to July than in the preceding three months. On a year-on-year basis, adjusted for calendar effects, production was 1.6% lower in July compared to July 2025. Data for June was revised to show production remained flat, rather than the previously reported 0.2% increase.

In a positive sign, industrial orders saw a 2.5% increase in July compared to the previous month on a seasonally and calendar-adjusted basis.