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Germany’s industrial production dropped 1.1% mom in July 2026, missing market forecasts for a 0.2% 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.
