FX.co ★ German Industrial Output Contraction Eases in January 2026

Germany’s industrial production downturn softened at the start of 2026, with the pace of decline easing in January. According to the latest data updated on 9 March 2026, industrial output fell by 0.5% month-over-month in January 2026, compared with a sharper 1.0% contraction in December 2025.

The figures, measured on a month-over-month basis, indicate that while the sector remains in negative territory, the intensity of the slowdown has moderated. The previous reading of -1.0% for December 2025 reflected the change from November to December, whereas the current -0.5% reading shows the change from December 2025 to January 2026. This improvement suggests that the industrial sector may be stabilizing after a weaker end to 2025, although a return to growth has yet to materialize.