German Factories Surge Unexpectedly
Economy / Finance

German Factories Surge Unexpectedly

German industrial production experienced a notable increase in May 2025, according to preliminary data released by the Federal Statistical Office (Destatis) on Monday. Seasonally and calendar-adjusted, production in the manufacturing sector rose by 1.2 percent compared to April.

Over a three-month period from March to May 2025, production was 1.4 percent higher than in the preceding three months. The initial estimate for April indicated a decline of 1.4 percent; however, a revised calculation revealed a more substantial drop of 1.6 percent compared to March. When compared to May 2024, production was 1.0 percent higher, adjusted for calendar variations.

The upward trend in May was largely attributable to growth within the automotive industry (+4.9 percent compared to April), energy generation (+10.8 percent) and the pharmaceutical sector (+10.0 percent). Conversely, a contraction in the construction industry (-3.9 percent) had a dampening effect on the overall results.

Industrial production itself saw an increase of 1.4 percent in May versus April, also seasonally and calendar-adjusted. Investment goods production rose significantly by 4.1 percent, while consumer goods production increased modestly by 0.5 percent. However, the production of intermediate goods declined by 2.1 percent. Year-on-year, industrial production also registered growth of 1.4 percent when compared to May 2024.

In contrast, energy-intensive industries experienced a decrease of 1.8 percent in production compared to April, adjusting for seasonal and calendar effects. However, over the three-month period from March to May, production in these energy-intensive sectors was up 0.7 percent. When viewed against the same period in the previous year, energy-intensive production in May 2025 was 4.8 percent lower.