June Industrial Production Rises Modestly, Driven by Automotive and Vehicle Manufacturing
Economy / Finance

June Industrial Production Rises Modestly, Driven by Automotive and Vehicle Manufacturing

Real (price-adjusted) production in the manufacturing sector rose by 0.2 percent in June 2026 compared to May 2026, according to preliminary data released by the Federal Statistical Office (Destatis).

Using a less volatile quarter-over-quarter comparison, production from April through June 2026 was 0.7 percent higher than in the three months prior. Furthermore, production in May 2026 increased by 0.7 percent compared to April 2026 after a revision of preliminary figures (the initial figure was +0.9 percent). However, when compared to the previous year’s month, June 2025, production in June 2026 was 0.1 percent lower, after calendar adjustments.

The positive trend in June 2026 was primarily driven by growth in the automotive industry, which increased by 3.6 percent month-over-month (seasonally and calendar-adjusted). The notable increase in other vehicle construction (including airplanes, ships, trains, and military vehicles) also positively influenced the overall result, soaring by 8.4 percent. Conversely, a decline in mechanical engineering negatively impacted the overall figures, falling by 3.9 percent.

Within the industrial sector (manufacturing excluding energy and construction), production remained unchanged at 0.0 percent in June 2026 compared to May 2026 (seasonally and calendar-adjusted). This was underpinned by a 1.0 percent rise in consumer goods production and a 0.2 percent increase in capital goods production; however, the production of intermediate goods dropped by 0.9 percent. Outside of industry, energy generation rose by 1.9 percent, while construction production increased by 0.1 percent. Year-over-year, industrial production declined by 0.8 percent when adjusted for calendar effects compared to June 2025.

In the energy-intensive industrial sectors, production decreased by 1.8 percent in June 2026 compared to May 2026 (seasonally and calendar-adjusted). Nevertheless, over the three-month period from April to June 2026, production in these energy-intensive sectors was 2.5 percent higher than the preceding three months. According to the Federal Office, when comparing June 2026 to June 2025, energy-intensive production was 2.2 percent higher after calendar adjustments.