German Industrial Production Surges: 3.0% Increase in March 2025

According to preliminary data from the Federal Statistical Office (Destatis), industrial production in Germany saw a significant increase of 3.0 percent in March 2025 compared to the previous month, after adjusting for seasonal and calendar effects. While production was 0.2 percent lower compared to March 2024, the latest figures indicate positive momentum in the German industrial sector.

The data published by Destatis reveals a notable rebound in production activity in March following a decline in February. Particularly strong increases were recorded in key industries, significantly impacting the overall result:

• Automotive industry: increase of 8.1 percent
• Pharmaceutical industry: increase of 19.6 percent
• Mechanical engineering: increase of 4.4 percent

Earlier estimates for February 2025 were also confirmed, showing a production decrease of 1.3 percent compared to January.

Highest Quarterly Increase Since Early 2022

Analyzing the quarterly data provides even more optimistic news. In the first quarter of 2025, production was 1.4 percent higher than in the fourth quarter of 2024. This marks the highest quarterly increase in German production since the beginning of 2022, potentially indicating a gradual recovery in the industrial sector.

Broad Growth Across Many Economic Sectors

The positive changes in industrial production in March 2025 encompassed many areas of the German economy. Industrial production (excluding energy and construction) rose by 3.6 percent compared to February 2025, after seasonal and calendar adjustment. Within industry, growth was recorded in all three main product groups:

• The production of consumer and capital goods increased by 4.9 percent.
• The production of intermediate goods rose by 1.1 percent.

Outside of industry, energy production fell by 1.8 percent, while construction recorded an increase of 2.1 percent compared to the previous month. In year-on-year terms, industrial production in March 2025 increased by 0.3 percent after calendar adjustment.

Energy-Intensive Industries Also See Growth

The data also indicates a positive trend in energy-intensive industries, where production increased by 1.5 percent in March 2025 compared to February. In a quarterly comparison, from January to March 2025, production in these sectors was 1.2 percent higher than in the previous three months. Nevertheless, compared to March 2024, energy-intensive production was 2.3 percent lower after calendar adjustment.

Methodology and Data Interpretation

The Federal Statistical Office emphasizes the importance of proper interpretation of business cycle indicator data. For the analysis of short-term economic trends, the comparison of seasonally and calendar-adjusted data with the previous month or quarter is crucial. In contrast, the year-on-year comparison after calendar adjustment serves for a long-term comparison of levels and is independent of seasonal fluctuations and calendar effects.

The rates of change are based on the production index for industry, with the average result of 2021 serving as the index base and set at 100 points. Seasonal and calendar adjustment was carried out using the X13 JDemetra+ method. The five sectors classified as energy-intensive are characterized by a particularly high energy demand in relation to their gross value added.

In relation to the reference year 2021, these energy-intensive sectors accounted for a total of 77 percent of total industrial energy consumption, with a share in industrial gross value added of 17 percent. In 2021, almost one million people (929,599) were employed in these industries across 6,986 industrial establishments in Germany.

The latest data from Germany offers hope for a recovery in the industrial sector, with the strong growth in March, supported by key industries, potentially signaling further improvement in the coming months.