Automobile manufacturing drag, Germany's industrial output in December fell by 1.9% month-on-month, marking the first contraction since August of last year

Germany's industrial output in December last year fell by 1.9% month-on-month, marking the first decline since August of the same year, and the drop was significantly higher than market expectations. The automotive manufacturing sector, after experiencing a rebound in November, saw a sharp month-on-month decline of 8.9% in December, and the machinery manufacturing sector also showed weakness. Notably, exports during the same period exhibited unexpected resilience, growing by 4.0% month-on-month, leading to an expansion of the trade surplus. Most economists believe that this decline is a short-term fluctuation in the recovery process, and with the release of fiscal policy effects and a rebound in orders, the manufacturing sector is expected to gradually improve by 2026