German industrial output unexpectedly falls in March amid decline in energy production

Germany’s industrial production unexpectedly declined 0.7% in March from the previous month, missing market expectations for a 0.4% rise, the Federal Statistical Office (Destatis) said Friday.

The figure followed a revised 0.5% monthly fall in February, while the preliminary estimate for the month had shown a 0.3% decrease.

On an annual basis, industrial production dropped 2.8% in March.

The less volatile three-month comparison showed that production was 1.2% lower in the January-March period than in the previous three months.

The monthly decline was mainly driven by a 4% fall in energy production and a 2.7% drop in the manufacture of machinery and equipment.

By contrast, production in the construction sector and the automotive industry each rose 1.9%, limiting the overall decline.

Excluding energy and construction, industrial production also fell 0.9% month-on-month in March.

Production of capital goods dropped 1.6%, while consumer goods output decreased 1.9%. Intermediate goods production, however, rose 0.8%.

Compared with March 2025, production in industry excluding energy and construction was down 4.1%.

Production in energy-intensive industrial branches increased 1.2% in March from February, while the three-month comparison showed output in these branches was 2.1% higher in the January-March period than in the previous three months.

On an annual basis, production in energy-intensive industrial branches fell 1.2% in March.