Germany's industrial production declined at the fastest pace in two-and-a-half years in February largely on weak construction activity.
Industrial output dropped 1.6 percent month-on-month in February, in contrast to a revised 0.1 percent rise seen in January, data from Destatis showed Friday. Output was expected to climb 0.3 percent.
This was the biggest decline since August 2015, when output fell 1.7 percent.
On a yearly basis, industrial production grew at a slower pace of 2.6 percent in February after rising 6.3 percent in January. Economists had forecast 4.4 percent expansion for February.
Production in industry excluding energy and construction decreased 2.0 percent.
Within industry, energy production grew 4 percent, while construction dropped 2.2 percent. The production of capital goods slid 3.1 percent and that of consumer goods by 1.5 percent. Similarly, intermediate goods output showed a 0.7 percent fall.
Order book situation and the positive mood among companies suggest that the industrial economy will continue to move upwards, the economy ministry said. However, growth momentum is likely to be weaker than in the previous year.
Ralph Solveen, an analyst at Commerzbank, said he expects a lower dynamic in the coming quarters as well. However, this is hardly the end of the upswing.
The European Central Bank's expansionary monetary policy continues to stimulate the economy, Solveen added.
Elsewhere, the Purchasing Managers' survey for construction showed that the sector contracted for the first time in more than three years in March due to colder-than-usual weather.
The IHS Markit construction PMI fell to 47.0 in March from 52.7 in February. The contraction was followed by particularly strong growth in January, when the PMI had hit an 82-month high.
Nonetheless, constructors remained highly confident about the outlook for activity over the next 12 months, citing a strong pipeline of new orders.
For comments and feedback contact: editorial@rttnews.com
Economic News
What parts of the world are seeing the best (and worst) economic performances lately? Click here to check out our Econ Scorecard and find out! See up-to-the-moment rankings for the best and worst performers in GDP, unemployment rate, inflation and much more.
May 01, 2026 15:54 ET Central banks dominated the economics news flow this week with almost all major ones announcing their latest policy decisions and many boosted expectations for a rate hike in June. In other news, several countries released the preliminary data for first quarter economic growth. In the U.S., comments by Fed Chair Jerome Powell were also in focus as his term ends this month.