Germany’s Industrial Production Falls 1.4% in April, Missing Expectations

Germany’s Industrial Sector Contracts Sharply in April 2025

Germany’s industrial production declined by 1.4% month-on-month (MoM) in April 2025, according to fresh data from Destatis. This is significantly worse than the -1.0% forecast, and follows a revised 2.3% growth in March.

The data adds to mounting evidence of economic challenges in Europe’s largest economy, as the country's key manufacturing sector continues to struggle.

Yearly Output Down 1.8%

On a year-over-year (YoY) basis, industrial output declined 1.8%, compared to a revised -0.7% in March. This underscores a deeper cooling of demand both domestically and abroad, particularly in Germany’s auto and machinery sectors.

Trade Surplus Shrinks to €14.6 Billion

In addition to the production slump, Germany’s trade surplus fell to €14.6 billion in April, well below the forecast of €20.2 billion and the previous figure of €21.2 billion. This decline reflects weaker exports and may point to broader softening in global trade conditions.

Implications for the Eurozone

As the economic engine of the Eurozone, Germany’s poor industrial and trade performance is likely to weigh on overall Euro area growth. The latest figures could influence the European Central Bank’s policy outlook, especially as inflation remains below target in some member states.

Read More on Economic Trends:

• Eurozone GDP Forecast 2025
• Germany Recession Risk Explained
• What’s Driving Industrial Weakness in Europe?