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DE: Industrial Production
| Consensus | Consensus Range | Actual | Previous | Revised | |
| Month over Month | -0.3% | -1.0% to 0.4% | -1.9% | 0.8% | 0.2% |
| Year over Year | -0.5% | 0.8% | 0.4% |
Highlights
Germany's industrial sector ended 2025 on a fragile note, with December delivering a sharp monthly contraction that contrasted with the steadier underlying trend. Output fell by 1.9 percent month-over-month, erasing November's modest gain and pushing annual growth slightly into negative territory. The scale of the monthly drop points to a year-end shock rather than a renewed collapse, as the annual comparison shows that production fell by 0.5 percent relative to the preceding year.
Weakness was concentrated in capital-intensive and cyclical sectors. Automotive production and machinery recorded steep declines, reinforcing the view that investment demand remains subdued amid high costs and lingering uncertainty. Energy-intensive industries continue to be a structural drag, with output now almost 18 percent below 2021 levels, underscoring the long shadow cast by energy price shocks since 2022.
Yet the picture is not uniformly bleak. Fabricated metals, transport equipment outside autos, and construction all expanded in December, while consumer goods output edged higher. Momentum remains uneven, with pockets of resilience offset by persistent weakness in Germany's traditional industrial core. These updates take the RPI to 22 and the RPI-P to 13, meaning that economic activities continue to outperform expectations in Germany.
Market Consensus Before Announcement
Industrial output expected down 0.3 percent on the month in December.
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.