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DE: Industrial Production
| Consensus | Consensus Range | Actual | Previous | Revised | |
| Month over Month | -0.5% | -1.0% to -0.5% | -1.9% | 1.2% | -0.1% |
| Year over Year | -3.5% | 1.2% | 0.0% |
Highlights
Industrial production in Germany slumped in June 2025, falling by 1.9 percent compared to May, and by 3.5 percent year-over-year, marking its lowest level since the pandemic-disrupted month of May 2020. The downward trend appears entrenched, with a 1.0 percent contraction over the second quarter. This downturn was particularly pronounced in energy-intensive sectors, where output dropped 2.2 percent month-over-month and 7.4 percent compared to June 2024.
Major contributors to the sharp decline include machinery and equipment (minus 5.3 percent), pharmaceuticals (minus 11.0 percent), and food production (minus 6.3 percent). Even consumer goods, often more resilient, declined by 5.6 percent. These drops outweighed modest gains in construction (0.7 percent) and energy production (3.1 percent).
The significant revision of May's figures, from a provisional 1.2 percent to minus 0.1 percent, reflects inconsistencies in reporting from the automotive sector, further complicating assessments of momentum. With production now at levels not seen since early 2020, the industrial sector faces a challenging outlook, pressured by weak demand, rising input costs, and uncertainty across global supply chains.
The broad-based decline across all major categories signals caution, as Germany's industrial base struggles to regain stable footing in the face of persistent economic headwinds. This latest update leaves the RPI at 5 and the RPI-P at minus 4, meaning that economic activities continue to stay within the expectations of the German economy.
Market Consensus Before Announcement
Output expected to fall back by 0.5 percent on the month after jumping 1.2 percent in May.
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.