German industrial production in December plunges more than expected

By Mucahithan Avcioglu

ISTANBUL (AA) - Industrial output in Germany dropped 1.9% on a monthly basis in December 2025, much above market expectations, according to the country’s statistical authority data released on December.

The decline reversed November's downwardly revised 0.2% monthly rise, Destatis data showed, while the market forecast was a 0.2% fall for December's figure.

The downturn was mainly led by a major drop in the automotive industry, Germany's largest industrial branch, which dropped 8.9% on a monthly basis.

The manufacture of machinery and equipment (-6.8%) and machine maintenance and assembly (-%17.6) also saw declines in December.

On the other hand, production grew in the manufacture of fabricated metal products (+3.2%) and the manufacture of other transport equipment (aircraft, ships, trains, military vehicles +10.5%).

"Production was also slightly up in construction (specialised construction activities and building completion work +2.5%, construction of buildings +8.4%). Overall, production in construction increased by 3.0%," Destatis said in a statement.

In December, production in industry, excluding energy and construction, was down 3% on a monthly basis.

"The production of consumer goods increased by 0.5%, while the production of capital goods dropped by 5.3% and intermediate goods production was down 1.2%. Outside of industry, energy production fell by 1.8%," it noted.

Compared with December 2024, production in industry, excluding energy and construction, was down 0.2% in December 2025.

On an annual basis, Germany's overall industrial output declined 0.6% in December.