Industrial production shrinks in August

Latest reading: Industrial production declined 2.4% on a seasonally adjusted month-on-month basis in August, following a 0.4% rise in the prior month, and marking the sharpest decline in eight months. Relative to the previous month's data, readings in August softened for manufacturing (-1.9% mom s.a. vs +1.4% in July) and mining and quarrying (-9.1% vs -4.5% in July). In contrast, the reading for electricity, gas, steam and air conditioning improved in August (-0.6% vs -7.6% in July). On a year-on-year basis, industrial production fell 2.4% in August, following a 0.6% increase in the prior month.

Panelist insight: Commenting on the outlook, ING’s Paolo Pizzoli stated: “We are currently lacking a clear domestic driver for industrial activity, and hopes rest on the potential pull from the implementation of the fiscal stimulus in Germany, which might materialise with a delay. It now seems likely that industry might have acted as a drag on growth over the third quarter of 2025, once more leaving the onus of growth on services, as suggested by the relevant PMI indices.”

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