Germany’s industrial production increased modestly in April, though economists caution that the improvement is unlikely to continue amid weak underlying manufacturing conditions and rising external risks.
Germany reported a 0.4% month-on-month rise in industrial output, driven mainly by a rebound in construction activity, particularly civil engineering. However, manufacturing output remained largely flat, suggesting limited broad-based strength in the industrial sector.
According to Commerzbank economist Ralph Solveen, the construction-led increase likely reflects a temporary rebound following earlier disruptions caused by poor weather conditions rather than a sustained recovery in activity.
He warned that declining business sentiment indicators point to weakening momentum ahead, with geopolitical uncertainty linked to the Iran conflict adding further pressure. As a result, industrial production could fall again in coming months, potentially contributing to a slight contraction in Germany’s economy in the second quarter.
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