According to preliminary data from the Federal Statistical Office (Destatis), real production in the manufacturing sector declined by 0.7% in March 2026 compared to February 2026, on a seasonally and calendar-adjusted basis. Broader comparisons showed that production for the three months between January and March 2026 was 1.2% lower than in the previous quarter. Looking only at the month-on-month data in February 2026, production fell by 0.5% compared to January 2026 (this revised figure changes a previously reported -0.3% decline). Furthermore, when comparing March 2026 to the previous year, production was 2.8% lower in calendar terms.
The overall fall recorded in March was primarily driven by declines in energy generation (-4.0%) and building equipment/mechanical engineering (-2.7%). These negative trends were partially offset by positive growth in the construction sector (+1.9%) and the automotive industry (+1.9%).
A closer look at industrial output (defined as the manufacturing sector excluding energy and construction) showed a decline of 0.9% in March 2026 versus February 2026 (seasonally and calendar-adjusted). This specific segment saw a 1.6% fall in capital goods production and a 1.9% decrease in consumer goods production. However, the production of intermediate goods increased by 0.8%. Year-over-year, industrial production declined by 4.1% compared to March 2025.
In contrast, energy-intensive industries reported growth in production, rising by 1.2% in March 2026 compared to February 2026 (seasonally and calendar-adjusted). For the three-month quarter, output in the energy-intensive sectors rose by 2.1% compared to the preceding quarter. Although the sector remained strong compared to the preceding months, the year-over-year comparison showed that energy-intensive production in March 2026 was 1.2% lower than in March 2025 (according to the Federal Office).
