German Industrial Output Rises as Expected

Germany’s industrial production rose 1.3% month-over-month in July 2025, following a revised 0.1% decline in June and in line with market expectations. The increase was mainly driven by the manufacture of machinery and equipment (+9.5%), the automotive industry (+2.3%), and pharmaceuticals (+8.4%). Energy production declined 4.5%, partially offsetting the overall gain. Production excluding energy and construction increased 2.2% from June, with capital goods up 3.0%, consumer goods up 2.1%, and intermediate goods rising 0.8%. Construction output also rose 0.3%, while energy-intensive industrial branches saw a 0.4% increase. Meanwhile, three-month comparisons showed production was 0.1% lower in the period from May to July than in the prior three months. On an annual basis, total industrial production increased 1.5%, recovering from a 1.8% drop in the previous period.