Germany's monthly industrial production ticked up in June thanks to automotive manufacturing, while the country's trade surplus declined as imports sharply rose while export values hit a new record high, data from the Federal Statistical Office showed Friday.
Industrial output in June was up 0.2% month over month, as expected, and against the revised 0.7% gain earlier. On an annual basis, industrial production dipped 0.1%, compared with zero growth a month ago.
According to Destatis, the monthly increase was largely driven by a 3.6% boost in automotive output alongside an 8.4% rise in other transport equipment, which includes aircraft, ships and trains. Conversely, a 3.9% decline in machinery and equipment manufacturing weighed on total growth.
"Looking ahead, it is obvious that the short-term outlook for the German economy is highly dependent on energy prices, the war in the Middle East and the current heatwave. Even if the German economy has proven more resilient than some had feared, an expansion of the conflict into other trade routes would obviously pose a new risk to the economic rebound. If developments of the last days prevail, bringing a ceasefire and another opening of the Strait, the outlook for German industry would obviously immediately improve," ING wrote, noting the sector's recovery is considered a "cyclical rebound from low levels" instead of structural growth.
In a separate same-day release, the German Federal Statistical Office reported that the eurozone's largest economy recorded a calendar and seasonally adjusted trade surplus of 15.4 billion euros in June, down from the revised 19.3 billion euros in the prior month.
Month over month, the country's exports edged up 0.9%, against the revised 1.1% gain in May 2026 and the expected 0.2% uptick. The value of Germany's exported goods hit an all-time single-month record of 139.3 billion euros, beating the September 2022 high of 139.1 billion euros.
Meanwhile, German imports jumped 4.4% month over month, compared with the revised 2.6% decline a month ago and the market forecast of a 1% increase. The value of imported goods totaled 123.9 billion euros in June 2026, reaching its highest monthly import value since the 126.5 billion euros recorded in November 2022.
