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Germany’s Factory Output Rises a Third Month as Exports Slump and Trade Surplus Narrows

Stronger domestic orders signal a tentative industrial turn despite persistent trade weakness.

Overview

  • Industrial production rose 0.8% month over month in November, marking a third consecutive increase after October was revised up to 2.0%, defying forecasts for a decline.
  • Auto output jumped 7.8% with machinery up 3.2% and machine maintenance and assembly up 10.5%, while energy production fell 7.8%; industry excluding energy and construction rose 2.1% and capital goods output gained 4.9%.
  • Exports fell 2.5% and imports rose 0.8% in November, narrowing the seasonally adjusted trade surplus to €13.1 billion, reported as the weakest since December 2022.
  • Shipments to the United States dropped 4.2% on the month and nearly 23% versus a year earlier, exports to China rose 3.4%, and imports from China increased 8.0%.
  • Industrial orders jumped 5.6% in November, helped by large contracts including defense, and the economy ministry cited an upward trend while warning that weak foreign demand continues to restrain a broader recovery; December production data are due February 6.