German Industrial Production Falls 1.1% in July as Auto Output Drops 9.2%

Key Facts

Germany's real industrial production fell 1.1% in July 2026 from June after seasonal and calendar adjustment, preliminary data from the Federal Statistical Office, Destatis, showed. Output was 1.6% lower than in July 2025 on a calendar-adjusted basis.

The less volatile comparison showed production rising 0.4% in the May-to-July period from the previous three months. Destatis also revised June's monthly reading to 0.0% from an initial 0.2% increase, limiting the case for treating July alone as evidence of an uninterrupted downturn.

Automotive production was the main driver of July's decline, falling 9.2% from the previous month after seasonal and calendar adjustment. Energy production rose 4.7%, partly offsetting the drag from autos on the headline index.

Excluding energy and construction, industrial production declined 2.2% month on month. Capital-goods output fell 3.4%, consumer-goods production dropped 2.2% and intermediate-goods output decreased 0.2%.

Outside industry, construction output increased 0.9% in July. On an annual basis, industrial production excluding energy and construction fell 3.3%, indicating that weakness in underlying industry was deeper than the headline index's 1.6% decline.

The production data came alongside a 3.4% monthly and 2.5% annual decline in real retail sales in July after seasonal and calendar adjustment. The figures point to parallel pressure on production and demand, but do not establish that weaker consumption directly caused the industrial decline.

Meanwhile, German annual inflation rose to 2.9% in August from 2.8% in July, while consumer prices increased 0.2% month on month. Weaker production alongside a limited acceleration in inflation presents policymakers with a mixed signal; the July production and retail estimates are also provisional and subject to revision.