FX.co ★ German Industrial Output Growth Beats Estimates

Germany's industrial production soared by 3.0% in March 2025, on a month-to-month basis, rebounding from a 1.3% decrease recorded the previous month. This exceeded market forecasts, which predicted a 0.8% increase. This development represents the second increase this year and the most substantial monthly rise since October 2021. The upswing was primarily driven by significant growth in the automotive sector (8.1%), pharmaceuticals (19.6%), machinery and equipment (4.4%), and construction (2.1%). Conversely, energy production saw a decline of 1.8%. However, sectors within energy-intensive industries experienced a 1.5% rise in output. Reviewing the less volatile three-month moving average, industrial production experienced a 1.4% growth in the first quarter compared to the previous quarter. On an annual scale, production dropped slightly by 0.2%, marking a significant improvement from February’s 4.0% decline and representing the slowest decrease since November 2022.