(MENAFN) Germany’s industrial production plunged 4.3% month-on-month in August, a significantly steeper decline than market expectations, according to data released Wednesday by the country’s statistical agency, Destatis.

This sharp fall reversed a 1.3% increase recorded in July and far exceeded analysts’ predictions of a 1% drop for August, the Destatis figures revealed.

The downturn was primarily driven by a steep 18.5% fall in the automotive sector, Germany’s largest industrial segment.

"The marked decrease may be explained, at least in part, by the combination of annual plant closures for holidays and production changeovers," Destatis explained.

Other sectors also experienced declines, with machinery and equipment production dropping 6.2%, and pharmaceuticals falling 10.3%. Production of computer, electronic, and optical products also contracted by 6.1%, weighing heavily on the overall output.

Excluding energy and construction, industrial output declined 5.6% month-over-month.

"Within industry, decreases were reported in all three major groups, with the production of capital goods declining by 9.6%, consumer goods production dropping by 4.7% and intermediate goods production down 0.2%. Outside industry, energy production decreased by 0.5% and production in construction was up 0.6%," Destatis noted.

Year-over-year, industrial output outside energy and construction shrank by 5.1% in August 2025 compared to August 2024. Overall, Germany’s industrial output fell 3.9% annually in August.

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