Germany’s Industrial Output Drops Unexpectedly in July Led by Auto Sector

Unexpected Decline in German Industrial Production

By Maria Martinez

July Production Figures and Analyst Expectations

Sept 7 (Reuters) – German industrial production fell unexpectedly in July, due to a sharp decline in production in the automotive sector.

Industrial production fell by 1.1% compared to the previous month, the federal statistics office said on Monday.

Analysts polled by Reuters had predicted a 0.1% rise.

Automotive Sector’s Impact

The decline recorded in July was mainly due to a 9.2% decrease in production in the automotive industry, driven by what the German Automotive Association VDA said was a multi-week production shutdown, the statistics office said.

Broader Industrial Trends

The less volatile three-month on three-month comparison showed that industrial production was 0.4% higher in the period from May to July than in the previous three months.

Compared with July 2025, production was 1.6% lower in July after adjustment for calendar effects.

Revised Data and Orders

After revision of the provisional data, production in June remained at the level of the previous month, instead of rising by 0.2%.

Industrial orders rose by 2.5% in July from the previous month on a seasonally and calendar-adjusted basis, the national statistics office said on Friday.

Reporting Credits

(Reporting by Tristan Veyet in Gdansk and Maria Martinez en BerlinEditing by Linda Pasquini)