Germany’s industrial production rose 2.0% month-on-month in August 2026, exceeding market forecasts for a 0.5% increase and rebounding from a revised 1.2% drop in July. This marked the highest reading since March 2025, mainly driven by a 9.3% advance in the construction sector, with increases in specialized construction and finishing trades (13.1%) and mechanical engineering (5.3%). Excluding energy and construction, industrial output grew 0.6%, with increases in capital goods (1.2%) and consumer goods (0.6%). In contrast, the automotive industry declined 5.4%, weighed down by standard factory shutdowns, while energy output fell 0.4%. Production in energy-intensive industrial sectors fell 0.5% from July. On a less volatile three-month basis, industrial output edged up 0.4% in the June–August period from the previous three months. Compared with a year earlier, industrial production climbed 2.3%, recovering from a 1.8% fall in July.