Industrial Production Decline

In a concerning turn for Europe's largest economy, Germany's industrial production witnessed a 1.3% decrease in February compared to the previous month, according to provisional data released by Destatis, the Federal Statistical Office. This downturn marks a 4% drop from the same period last year, signaling potential challenges ahead for the manufacturing sector.

Sector-Specific Downturns

The construction industry was among the hardest hit, with output falling by 3.2% month-on-month. The food industry and energy production sectors also faced significant setbacks, with declines of 5.3% and 3.3%, respectively. Additionally, the production of intermediate goods saw a modest decrease of 0.4%, while consumer goods output experienced a sharper 3.0% fall from January 2025.