German industrial production rises more than expected in August

(Sharecast News) - Industrial production in Germany rose by a more than expected 2.0% in August, driven mainly by a sharp rebound in construction output, according to official data published on Wednesday.

Analysts had been expecting a more modest 0.5% increase. The construction sector posted a 9.3% month‑on‑month rise after seasonal and calendar adjustment, helped by a strong performance in specialised construction activities and building‑completion work, where production jumped 13.1%, federal stats office Destatis added.

Machinery and equipment manufacturing also supported the headline figure, with output up 5.3% on the month. Destatis noted that industry excluding energy and construction grew 0.6%, reflecting gains in capital goods and consumer goods production.

By contrast, automotive output fell 5.4%, continuing its recent weak trend and weighing on overall industrial performance. The German automotive industry association said the decline partly reflected factory holidays, which are typical for the sector and were more concentrated in August this year than in 2025.

Energy‑intensive industries also remained under pressure, with production down 0.5% on the month and 2.1% lower than a year earlier after calendar adjustment. Output in these sectors was 2.9% lower over the June-August period compared with the previous three months.

Reporting by Frank Prenesti for Sharecast.com