For years, anyone predicting the collapse of German industry was labeled a doomsayer. The production figures released Wednesday morning paint a catastrophic picture across all sectors. In the end, the pessimists were right.
The numbers released by the Federal Statistical Office in Wiesbaden on Wednesday morning show a shocking reality. Production across the entire manufacturing sector fell by 4.3 percent in August compared to July, and industrial output dropped even more sharply, by 5.6 percent.
The decline in the automotive industry is particularly dramatic: it plunged by an astounding 18.5 percent month-on-month, according to the VDA industry association. These figures speak for themselves – they point to an almost complete collapse of a sector that has lost more than a third of its production volume since 2018.
Looking at production for the entire year 2025, industrial output as a whole is down 3.9 percent from last year. This figure roughly describes the actual recession of the German economy.
Beyond the unsurprising collapse of the German automotive sector, the pharmaceutical industry is now also making headlines. Production fell 10.3 percent from the previous month – a remarkable drop, given that the pharma sector is usually considered recession-proof and benefits from an aging population and government-guaranteed prices.
