By Frank Prenesti
Date: Thursday 06 Nov 2025
(Sharecast News) - German industrial production missed estimates but still rebounded to rise 1.3% month-on-month in September, according to official data published on Thursday.
The figure compares with a sharp 3.7% fall in August and expectations of a 3% rise. Federal statistics office Destatis said the change was driven by production in the automotive and electronics industries, while production in manufacturing dropped.
Activity in the construction sector weakened, dropping by 0.9% month on month.
Analysts at ING said German industry would oscillate between "some cyclical relief and continued structural weakness".
"On a more positive note, production expectations have started to increase again, industrial orders rebounded in September, inventories have come down somewhat and public orders for defence and infrastructure should support production," they added.
"At the same time, however, US tariffs, Chinese competition, reluctance to invest and capacity utilisation at the low levels last seen during the financial crisis argue against any premature optimism."
"In short, today's industrial production data shows weak signs of life. Over the coming months, industrial production should show very tentative improvements. However, any of these improvements will be of a cyclical nature, coming from very low levels, and should not be mistaken for structural improvements."
Reporting by Frank Prenesti for Sharecast.com
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