Commerzbank’s Dr. Ralph Solveen highlights continued weakness in German industry, with industrial production down 0.3% month-on-month in February and manufacturing output also slightly lower. He notes this points to a decline in first-quarter production versus late 2025 and only marginal overall economic growth, while sideways trends in production and factory orders suggest no short-term industrial recovery.

German production signals fragile growth

"German industry is struggling to gain momentum. Industrial production fell by 0.3% in February on a month-on-month basis, pointing to a decline in the first quarter relative to the final quarter of 2025."

"As a result, the overall economy is likely to have grown only marginally in the first quarter, and recent trends in new factory orders offer little hope that the economy will soon receive significant additional momentum from the industrial sector."

"Viewed over a longer period, production has largely moved sideways since the end of 2024."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)