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German Industrial Output Rises 2.0% in August on Construction Gains

Germany's real production in the secondary sector increased by 2.0% in August 2026 compared to the previous month, according to preliminary data from the Federal Statistical Office.

Helvetic Markets Desk · 7 Oct 2026 · 11:00 · 2 min read
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German Industrial Output Rises 2.0% in August on Construction Gains
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Real price-adjusted production in the secondary sector in Germany rose by a seasonally and calendar-adjusted 2.0% in August 2026 compared with July 2026, based on provisional figures released by the Federal Statistical Office, known as Destatis. In the less volatile three-month comparison covering June to August 2026, production output was 0.4% higher than in the preceding three-month period. When compared against the same month of the previous year, August 2025, calendar-adjusted production in August 2026 increased by 2.3%. Meanwhile, figures for July 2026 experienced a downward revision, showing a 1.2% decrease compared to June 2026, widening slightly from the previously reported provisional drop of 1.1%.

The overall expansion observed in August 2026 was driven largely by strong performance in the construction sector, which recorded a seasonally and calendar-adjusted monthly increase of 9.3%. Within the construction industry, specialized construction activities and finishing trades registered a notable surge of 13.1% compared to the prior month. The mechanical engineering sector also provided positive momentum, posting a 5.3% growth rate. Conversely, the automotive industry exerted a downward drag on overall output, marking a 5.4% contraction. According to statements from the German Association of the Automotive Industry, abbreviated as VDA, this downturn was partly connected to standard industry factory holidays, which fell more heavily into August in 2026 than during the previous year.

Industrial production, which encompasses the secondary sector excluding energy and construction, advanced by 0.6% on a seasonally and calendar-adjusted basis in August 2026 from July. Within this segment, the manufacturing of capital goods climbed by 1.2% and consumer goods production grew by 0.6%, whereas intermediate goods production dipped by 0.2%. Outside of core industry, energy generation decreased by 0.4%. On an annual basis, calendar-adjusted industrial production fell by 0.4% relative to August 2025.

Energy-intensive industrial branches experienced a contraction in August 2026, with output dropping by 0.5% on a seasonally and calendar-adjusted basis compared to July. Over the three-month span from June to August 2026, production in these energy-intensive sectors declined by 2.9% relative to the preceding three months. Compared with August 2025, the calendar-adjusted output for energy-intensive branches was 2.1% lower. The Federal Statistical Office notes that these five designated energy-intensive branches require a disproportionately high amount of energy relative to their gross value added, accounting for 77% of total industrial energy consumption based on 2021 baseline data, while representing 17% of industrial gross value added and employing approximately 930,000 workers across roughly 7,000 industrial enterprises in Germany.

Methodological parameters for these economic indicators rely on the production index for the secondary sector, utilizing the average result of the year 2021 as a base index level fixed at 100 points. Seasonal and calendar adjustments are calculated utilizing the X13 JDemetra+ method. Beginning with the January 2026 reporting month, a revised version of the classification of products for production statistics, designated as GP 2026, replaced the older 2019 edition, though the underlying economic classification of activities from 2008 remained unchanged.

Source: Destatis – Pressemitteilungen

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This article was produced with AI assistance by the Helvetic Markets markets desk.
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