Germany’s Industrial Production Declines Sharply in April – Pharmaceutical Sector Hit Hard

Germany’s industrial sector suffered a significant setback in April 2025: According to preliminary data from the Federal Statistical Office (Destatis), real (price-adjusted) production in the manufacturing sector fell by 1.4% compared to the previous month. One of the hardest-hit sectors was pharmaceuticals, which recorded a dramatic 17.7% drop – following a strong gain of 19.3% in March.

Analysts had anticipated a decrease in output but expected it to be milder, averaging around a 1.0% decline. On a year-on-year basis, industrial output dropped by 1.8%, underscoring a broader economic cooling.

Destatis noted that the decline was broad-based across various industrial sectors. The Federal Ministry for Economic Affairs also pointed to uncertainty stemming from U.S. trade policy and tariffs as a factor contributing to the volatility in production figures.

Despite these weak numbers, there are initial signs of a possible turnaround: Industrial orders rose for the second consecutive month in April, giving some economists hope that the current downturn may be nearing its end.