Germany's Industrial Production Saw a Decline Driven by Automotive
According to data from the Federal Statistical Office, industrial production in Germany declined in July, with the decrease in automotive sector production playing a significant role in this drop.
In July 2026, industrial production in Germany decreased by 1.1 percent compared to the previous month. This contraction in production was mainly driven by the downturn experienced in the automotive sector.
Industrial Production Data for July
According to data released by the Federal Statistical Office (Destatis), industrial production in July 2026 recorded a real decrease of 1.1 percent compared to the previous month.
In the three-month comparison, where fluctuations are felt less, production in the May–July 2026 period increased by 0.4 percent compared to the previous three months.
Sharp Decline in the Automotive Sector
The overall decline recorded in July 2026 stemmed primarily from the decrease in production within the automotive sector, where output dropped by 9.2 percent compared to the previous month.
According to a statement by the German Association of the Automotive Industry, production halts lasting a few weeks may have been one of the primary reasons for this drop.
Increase Observed in Energy Production
Contrary to the decline in automotive, a 4.7 percent increase in energy production had a positive impact on total industrial production.
This rise observed in the energy sector was primarily driven by electricity generation from wind energy and photovoltaic sources.
Production Changes on a Sectoral Basis
In July 2026, industrial production excluding energy and construction decreased by 2.2 percent compared to the previous month.
While capital goods production decreased by 3.4 percent, consumer goods production by 2.2 percent, and intermediate goods production by 0.2 percent, production in the construction sector increased by 0.9 percent.
Situation in Energy-Intensive Industrial Sectors
Production in energy-intensive industrial branches decreased by 1.7 percent in July 2026 compared to June 2026.
In the May–July 2026 period, the production of these branches remained at the level of the previous three-month period, registering a 0.5 percent decline on an annual basis.