Germany Factory Production at Highest Level for 18 Months
Construction and machinery led the increase, while auto output fell more than 5%, officials said, underscoring a fragile recovery.
- On Wednesday, Destatis reported that German factory output rose two percent in August, marking the highest level in a year and a half following a 1.2-percent decline in July.
- Construction sector production expanded over nine percent, supported by public infrastructure contracts, while the struggling auto sector declined over five percent, partly due to factory holidays.
- Energy-Intensive industries struggled amid oil price surges from Middle East conflicts and restricted Rhine shipping due to low water levels, though machinery and equipment output rose over five percent.
- The economy ministry called output "surprisingly strong" yet warned that industrial activity "remains subdued"; nevertheless, ING economist Carsten Brzeski said "After a setback in July, Germany's cyclical rebound gained new momentum in August."
- Leading economic institutes recently upgraded 2026 growth forecasts for Germany to 1.3 percent, while analysts surveyed by FactSet had previously forecast a slight decline amid Iran war fallout concerns.
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21 Articles
Despite obstacles to the Rhine navigation through the low water, the German companies increased their production strongly in August. A stronger plus was last seen in March 2025.
Industrial production in Germany recovered in August, as industrial companies continued to respond to the changing environment caused by the volatility of energy prices. Exclusive material for subscribers. To have full access, access the link of the material and register.
Germany factory production at highest level for 18 months
Factory output rose by two percent month-on-month on the back of strong growth in the construction sector, after a 1.2-percent fall in July, according to provisional data from statistics agency Destatis. Analysts surveyed by financial data firm FactSet had forecast a slight decline. It is the latest evidence that Europe's biggest economy is gaining strength after several years of stagnation, boosted by a public spending blitz. The economy minis…
German industry has struggled in recent months. Now the order situation is also palpably brightening and surpassing economists' expectations.
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