Germany’s industrial output declined 1.9% month-on-month in December 2025, reversing a downwardly revised 0.2% rise in November and worse than market expectations of a 0.3% fall. This was the first monthly drop in four months, mainly due to lower output in the automotive industry (-8.9%), machinery and equipment (-6.8%), and machine maintenance and assembly (-17.6%). These declines, however, were partially offset by gains in fabricated metal products (+3.2%) and other transport equipment (+10.5%). Construction output also increased (+3%). Excluding energy and construction, industrial output dropped 3%, dragged by lower production in capital goods (-5.3%) and intermediate goods (-1.2%), while output in consumer goods rose (+0.5%). In the less volatile three-month comparison, activity from October to December was 0.9% higher than in the previous three months. On an annual basis, industrial output fell 0.6%, following a downwardly revised 0.5% gain in November.