Overview
- Preliminary data from Destatis show real production in the producing sector fell 1.1% month‑on‑month in July 2026, marking a setback for a recovery that had appeared to be taking hold.
- Automotive output dropped 9.2% in July 2026 after a multi‑week production pause at car plants, a concentrated disruption that analysts say explains most of the monthly decline.
- Energy generation rose 4.7% in July because of stronger wind and solar output, while manufacturing excluding energy and construction contracted 2.2% and the three‑month comparison still edged up 0.4%.
- Calendar‑ and seasonally‑adjusted exports slipped 0.8% in July to €138.2 billion with shipments to the United States jumping 19.1% and exports to China falling 9.5%, and the trade surplus widened to €21.3 billion.
- Forecasters and government agencies warn the near‑term outlook is fragile because low Rhine water, the ongoing Middle East conflict and global trade shifts could weigh on August and September activity and on companies' delivery chains.