September Industrial Production Rises, Driven by Automakers and Pharma, Despite Construction Dip
Economy / Finance

September Industrial Production Rises, Driven by Automakers and Pharma, Despite Construction Dip

Preliminary figures from the Federal Statistical Office (Destatis) show that the price-adjusted production in the manufacturing sector increased by 0.7 percent in September 2026 compared to August 2026, after being seasonally and calendar adjusted.

When comparing the three-month periods, production dipped by 0.4 percent in the third quarter of 2026 relative to the second quarter of 2026 and showed a calendar-adjusted increase of 0.4 percent compared to the September 2025 figure. Furthermore, the August 2026 production rose by 1.0 percent compared to July 2026, following a revision of the preliminary results, which was seasonally and calendar adjusted (the initial provisional value had been +2.0 percent). This relatively high revision was attributed to additional data received from companies regarding VAT declarations in the building sector.

The positive momentum in September 2026 was primarily driven by strong growth in the automotive industry, which saw a seasonally and calendar adjusted increase of 17.1 percent from the previous month. This industry had previously lagged in recent months, partly due to production reconfigurations and factory holidays. The pharmaceutical industry also positively contributed to the overall result, rising by 8.0 percent after two weaker months. Conversely, the downturn in construction production, which fell by 2.6 percent, and the decline in mechanical engineering (-6.5 percent), which fell after an increase of 5.8 percent in August 2026, acted as negative influences.

Focusing specifically on industrial production (manufacturing excluding energy and construction), output rose by 1.7 percent month-over-month in September 2026. Within this sector, the production of capital goods increased by 3.0 percent, while consumer goods production rose by 0.8 percent and intermediate goods production increased by 0.1 percent. Outside of industry, energy generation declined by 1.2 percent. Overall, industrial production registered a calendar-adjusted increase of 0.3 percent when compared to September 2025.

In sectors that require high energy input, production increased by 0.8 percent month-over-month in September 2026. However, in a three-month comparison, production in these energy-intensive industries decreased by 3.5 percent in the third quarter of 2026 relative to the second quarter. Statisticians noted that when compared to the previous year’s September report, energy-intensive production fell by 1.9 percent, calendar adjusted.