Germany’s Industrial Output Drops Again as Energy and Machinery Production Sink

Germany’s industrial sector remained under pressure in March 2026, with production falling for a second straight month, deepening concerns about weakness across key industries. The Federal Statistical Office reported that industrial production declined 0.7% from February after a revised 0.5% fall the previous month. Compared with March 2025, overall production dropped 2.8%, while output from January to March was 1.2% lower than the previous three-month period. The decline was mainly driven by a 4.0% drop in energy production and a 2.7% fall in machinery and equipment manufacturing. Production excluding energy and construction slipped 0.9%, with capital goods down 1.6% and consumer goods falling 1.9%, although intermediate goods rose 0.8%. Construction activity and automotive production both increased 1.9%, helping limit the downturn. Energy-intensive industrial branches rose 1.2% from February, but remained 1.2% below March 2025 levels.