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German Industrial Output Makes Slight Recovery in April; Trade Surplus Shrinks

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German Industrial Output Makes Slight Recovery in April; Trade Surplus Shrinks

Industrial production in Germany marginally returned to growth on a monthly basis in April, while the country's foreign trade surplus edged down unexpectedly, provisional data from the Federal Statistical Office showed Tuesday.

Production in German industry rose 0.4% month over month in April, following a revised 0.1% dip in March. The seasonally and calendar-adjusted reading was consistent with market expectations.

The main contributor to the upside development was a 2.4% monthly gain in the construction industry, while a 2.1% jump in chemical production and a 1.6% uptick in the manufacture of fabricated metal products, except machinery and equipment, also had a positive impact. Meanwhile, a 4.7% decline in automotive production weighed down the industry.

On an annual basis, German industrial output, adjusted for calendar effects, was 0.5% lower, against the revised 3.4% decrease a month earlier. Excluding energy and construction, production fell 2.1%.

"All in all, this morning's industrial production data show that the hoped-for industrial rebound in 2026 has been shelved once again. Even the first monthly increase since the war in the Middle East started does not bring new optimism. It is simply too little, and the broader picture still shows a German industry that has stagnated for the last four months," analysts at ING said.

Separately, Germany's calendar and seasonally adjusted trade surplus stood at 14.5 billion euros in April, down from the revised 14.7 billion euros a month ago and market expectations of 15 billion euros.

Exports edged up 0.9% month over month to 136.6 billion euros, compared with the revised 0.3% uptick in March and the expected 0.3% decline. Monthly imports were 1.2% higher at 122.1 billion euros, against the revised 4.5% growth earlier.

Shipments to trading partners in the European Union improved 1%, while imports from these countries inched 0.4% upwards. Exports to third countries gained 0.7%, while imports climbed 2%.

Germany exported the most to the US, with goods valued at 11.4 billion euros, up 1.8% month over month. Meanwhile, most imports, worth 15.6 billion euros, came from China, marking a sequential rise of 0.2%.

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