German industrial production unexpectedly falls in July

(Sharecast News) - German industrial production fell unexpectedly in July, dragged lower by a sharp drop in automotive output, according to figures from the Federal Statistics Office on Monday. Total output declined 1.1% on the month, confounding expectations for a 0.1% rise and marking a setback after a period of modest stabilisation across the sector.

Destatis said the fall was driven largely by a 9.2% slump in automotive production, reflecting a multi‑week shutdown highlighted by industry group VDA.

On a three‑month basis, however, output was still 0.4% higher in the May to July period than in the previous three months, suggesting underlying momentum remained fragile but not collapsing.

Compared with July 2025, industrial production was 1.6% lower after calendar adjustments. June's reading was also revised, with output now seen flat on the month rather than up 0.2%.

The figures follow separate data on Friday showing industrial orders rose 2.5% in July on a seasonally and calendar‑adjusted basis, offering a partial offset to the weaker production print.





Reporting by Iain Gilbert at Sharecast.com