| Consensus | Consensus Range | Actual | Previous | Revised | |
|---|---|---|---|---|---|
| Month over Month | 1.2% | 0.5% to 1.5% | 1.3% | -1.9% | -0.1% |
| Year over Year | 1.5% | -3.5% | -1.8% |
Highlights
In July 2025, German industry showed signs of resilience after a sluggish start to the summer. Output rose by 1.3 percent compared with June, reversing the slight dip recorded the previous month. On an annual basis, production climbed 1.5 percent, suggesting a modest recovery despite ongoing structural challenges. The upward revision of June's figures, mainly due to corrected data from the automotive sector, further softened the picture of earlier weakness.
The July rebound was largely driven by machinery and equipment manufacturing, which surged by 9.5 percent. The automotive (2.3 percent) and pharmaceutical (8.4 percent) industries also provided substantial boosts, reflecting renewed demand and supply-side adjustments. Consumer, intermediate, and capital goods all posted gains, indicating broad-based momentum across industrial categories.
However, not all sectors shared in the positive trend. Energy production slumped by 4.5 percent, dragging down overall performance and emphasising the continuing volatility in energy markets. Energy-intensive industries, although posting a slight month-over-month increase (0.4 percent), remained in decline year-over-year (minus 4.8 percent), highlighting the structural pressures of high energy costs.
Overall, the July figures reveal a fragile yet positive industrial outlook, characterised by a strong performance in high-value sectors, yet tempered by energy-related vulnerabilities, taking the RPI to minus 8 and the RPI-P to minus 13. This means that adjusted for prices, economic activities continue to remain below the expectations of the German economy.
The July rebound was largely driven by machinery and equipment manufacturing, which surged by 9.5 percent. The automotive (2.3 percent) and pharmaceutical (8.4 percent) industries also provided substantial boosts, reflecting renewed demand and supply-side adjustments. Consumer, intermediate, and capital goods all posted gains, indicating broad-based momentum across industrial categories.
However, not all sectors shared in the positive trend. Energy production slumped by 4.5 percent, dragging down overall performance and emphasising the continuing volatility in energy markets. Energy-intensive industries, although posting a slight month-over-month increase (0.4 percent), remained in decline year-over-year (minus 4.8 percent), highlighting the structural pressures of high energy costs.
Overall, the July figures reveal a fragile yet positive industrial outlook, characterised by a strong performance in high-value sectors, yet tempered by energy-related vulnerabilities, taking the RPI to minus 8 and the RPI-P to minus 13. This means that adjusted for prices, economic activities continue to remain below the expectations of the German economy.
Market Consensus Before Announcement
Output is expected to rebound by 1.2 percent on the month in July after falling 1.9 percent in June.
Definition
Industrial production measures the physical output of the nation's factories, mines and utilities. Data are collected from companies in the sector with fifty or more employees and include mining and quarrying, manufacturing, energy and, in contrast to its Eurozone counterpart, construction.
Description
Investors want to keep their finger on the pulse of the economy because it usually dictates how various types of investments will perform. The stock market likes to see healthy economic growth because that translates to higher corporate profits. The bond market prefers more subdued growth that will not lead to inflationary pressures. By tracking economic data such as industrial production, investors will know what the economic backdrop is for these markets and their portfolios.
Like the manufacturing orders data, the production index has the advantage of being available in a timely manner giving a more current view of business activity. Those responding to the data collection survey account for about 80 percent of total industrial production. Like the PPI and the orders data, construction is excluded.
This report has a big influence on market behavior. In any given month, one can see whether capital goods or consumer goods are growing more rapidly. Are manufacturers still producing construction supplies and other materials? This detailed report shows which sectors of the economy are growing and which are not.
Like the manufacturing orders data, the production index has the advantage of being available in a timely manner giving a more current view of business activity. Those responding to the data collection survey account for about 80 percent of total industrial production. Like the PPI and the orders data, construction is excluded.
This report has a big influence on market behavior. In any given month, one can see whether capital goods or consumer goods are growing more rapidly. Are manufacturers still producing construction supplies and other materials? This detailed report shows which sectors of the economy are growing and which are not.
