German Industrial Production Declines Sharply in December

Germany’s industrial production saw a significant decline in December 2024, marking the steepest drop in five months as the manufacturing sector continued to face challenges despite signs of stabilization in other parts of the economy.

Key Figures and Sector Impact

• Industrial output fell by 2.4 percent from the previous month, far exceeding the expected 0.7 percent decline.
• Car and machinery industries were the primary contributors to this downturn, according to data from the German statistics office.
• This decline pushed the industrial production index to its lowest level since mid-2020, when the pandemic disrupted global supply chains.

Manufacturing Sector Under Pressure

The latest data underscores the ongoing struggles in Germany’s manufacturing sector, which has faced weak global demand, rising production costs, and supply chain disruptions. While other parts of the economy show signs of stabilization, the industrial sector remains a weak point, raising concerns about Germany’s broader economic outlook.