Germany’s industrial production fell 1.1% month-on-month in July 2026, according to the Federal Statistical Office, after a downwardly revised flat reading in June. The decline, the steepest since August last year, was driven mainly by a 9.2% drop in automotive production during production stoppages that lasted several weeks. The result missed economists’ expectations for a 0.1% increase in a Reuters poll, while an earlier account cited a 0.2% forecast. Excluding energy and construction, industrial output declined 2.2%, with capital goods down 3.4%, consumer goods down 2.2% and intermediate goods down 0.2%. Energy production rose 4.7% as electricity generation from wind and photovoltaics increased, while construction output gained 0.9%. Industrial orders, however, rose 2.5% in July from June on a seasonally and calendar-adjusted basis, exceeding analysts’ 0.3% forecast and contrasting with weak output.