German industrial output rises 2 pct in August despite auto slump-Xinhua

German industrial output rises 2 pct in August despite auto slump

Source: Xinhua

Editor: huaxia

2026-10-07 21:40:15

BERLIN, Oct. 7 (Xinhua) -- German industrial output rose 2 percent in August from the previous month, official data showed Wednesday, although a renewed decline in auto production and persistent weakness in key industrial sectors pointed to an uneven recovery.

The rebound followed a 1.2-percent decline in July and was driven mainly by stronger construction activity and a 5.3-percent rise in machinery output, according to the Federal Statistical Office (Destatis).

The Economy Ministry said the recent increase in industrial production had been "surprisingly strong," driven in part by an exceptional expansion in construction-related activity and public demand.

However, the ministry warned, the broader industrial economy remained subdued. Weak foreign demand and low water levels on key inland waterways continued to weigh on activity, while prospects for a broad-based recovery in industry remained weak, it said.

Data from Destatis showed renewed weakness in Germany's key automotive sector, where production fell 5.4 percent month-on-month in August. Citing the country's automotive association VDA, Destatis said the decline partly reflected factory holidays, which were more heavily concentrated in August this year than in 2025.

"There can be no talk of a broad upswing in industry," said Jupp Zenzen, economic expert at the German Chamber of Commerce and Industry (DIHK).

Despite a slight recent increase, industrial production was still marginally lower than a year earlier, while output in energy-intensive industries had fallen to its lowest level since the end of 2023, Zenzen added.

Carsten Brzeski, global head of macro at ING Research, said the latest data showed Germany had carried some positive economic momentum into the third quarter, but cautioned that turning it into a sustainable recovery would require significantly more policy action.

"To fundamentally bring the German economy back on a sustainable growth path, the economy still needs more reforms that improve international competitiveness," Brzeski said, adding that the measures announced so far would not be enough. ■