Germany’s statistics office said industrial production fell 4.3% in August compared with the previous month, the biggest decline in more than three years as car makers saw demand evaporate after customers brought forward purchases to avoid U.S. tariffs【714846939585500†L184-L195】. Production in the automotive industry dropped 18.5% due to factory shutdowns for holidays and model changeovers【714846939585500†L205-L207】. The August slump wiped out gains made earlier in the year, leaving output 12% below its February 2023 peak【714846939585500†L233-L236】.

On a three‑month basis, output in June–August was 1.3% lower than in the previous three months【714846939585500†L202-L204】. Analysts had expected only a 1.0% decline, so the sharp fall raised fears that Europe’s largest economy could contract again. Economists from ING and Commerzbank said the disappointing figures point to persistent weakness in German manufacturing and increase the risk of recession【714846939585500†L221-L228】. Germany’s energy‑intensive industry has struggled since Russia’s invasion of Ukraine sent energy costs higher, while U.S. demand cooled after earlier front‑loading【714846939585500†L209-L216】.