Germany: Industrial production speeds up in October
Latest reading: Industrial production increased 1.8% on a calendar-adjusted month-on-month basis in October, following a 1.1% rise in the prior month. October’s reading was the strongest since March 2025.
Relative to the prior month’s figures, readings in October improved for mining and quarrying (+10.2% in seasonally adjusted month-on-month terms vs +1.7% in September) and construction sector (+3.3% vs -1.7% in September). In contrast, readings worsened for industrial production (+1.5% vs +1.6% in September) and energy (+1.4% vs +1.9% in September).
In calendar-adjusted year-on-year terms, industrial production rose 0.8% in October, following a 1.4% decline in the previous month.
Panelist insight: Commenting on the outlook, ING’s Carsten Brzeski stated:
“There are at least tentative signs of a bottoming out. Industrial orders have now increased for two months in a row, inventories have come down somewhat, and capacity utilisation has started to turn. Admittedly, all of these signs are still very tentative and weak. However, let’s not forget that the German parliament only signed off on the 2026 budget a few weeks ago and that the announced fiscal stimulus will only gradually unfold.”