German industrial production increased +0.4% MoM in April, recovering from a revised -0.1% decline in March and coming in stronger than recent trends.

• Despite the monthly improvement, industrial output remained -0.5% YoY and the 3-month average was still down -0.5% compared with the prior three-month period, highlighting ongoing weakness in the sector.
• The April increase was driven primarily by construction (+2.4% MoM), chemicals (+2.1%), and fabricated metal products (+1.6%). Offsetting some of those gains, automotive production fell -4.7% and remained a significant drag on overall manufacturing activity.
• Looking beneath the headline, production excluding energy and construction was unchanged (0.0% MoM). Intermediate goods output rose +1.4% and consumer goods production increased +1.9%, while capital goods output fell -1.5%.
• One bright spot continues to be energy-intensive industries. Production in energy-intensive sectors rose +1.0% MoM and was up +0.9% YoY, with output over the past three months running +2.6% above the prior three-month period.
• The report suggests Germany's industrial sector remains fragile, but recent stabilization in construction and energy-intensive industries is helping offset continued weakness in key manufacturing areas such as autos.

German industrial production fell -4.3% MoM (vs -1.0% MoM expected) and -3.9% YoY in August 2025 (seasonally and calendar adjusted), marking a sharp reversal from July’s upwardly revised +1.3% MoM and +1.5% YoY, driven largely by weakness in autos and machinery.

• Industrial output (ex-energy and construction) declined -5.6% MoM and -5.1% YoY, with broad-based contractions across capital, consumer, and intermediate goods.

• Capital goods production fell -9.6% MoM, the largest drag on the headline, following strong gains in July.

• Consumer goods output decreased -4.7% MoM, while intermediate goods dipped -0.2% MoM, indicating widespread but uneven weakness.

• Automotive production plunged -18.5% MoM, reflecting seasonal plant shutdowns and model changeovers, heavily weighing on the overall index.

• Machinery and equipment output fell -6.2% MoM after July’s +9.2% rebound, contributing further to the downturn.

• Pharmaceuticals (-10.3%) and electronics (-6.1%) also posted significant monthly declines.

• Energy production edged down -0.5% MoM, while construction rose +0.6% MoM, partially offsetting losses elsewhere.

• Energy-intensive industries rose slightly +0.2% MoM, though output remained -4.0% YoY, showing limited relief amid broader industrial weakness.