Germany’s industrial output declined 0.3% mom in February 2026, reversing an upwardly revised flat reading in the previous month and missing market expectations for a 0.9% rise. The drop was driven by lower activity in construction (-1.2%), computer, electronic and optical products (-3.9%), and pharmaceuticals (-4.4%), while the automotive sector provided some support with a 1.7% increase. Excluding energy and construction, output edged down 0.1%, as a fall in consumer goods production (-1.5%) outweighed gains in intermediate (0.4%) and capital goods (0.1%). In the less volatile three-month comparison, industrial activity slipped 0.4% from December to February. On an annual basis, production was flat, following a 0.9% contraction in January.