Photo: Collected

FRANKFURT, Germany, Nov 6, 2025 (BSS/AFP) - German industrial production rebounded less than expected in September, official data showed Thursday, with Europe's beleaguered top economy still struggling to get back on its feet.

Factory output rose 1.3 percent month-on-month, according to preliminary data from federal statistics agency Destatis, after a fall of 3.7 percent in August.

Analysts surveyed by financial data firm FactSet had expected a rebound of three percent in September.

The German economy has been mired in a long downturn as it battles an industrial slump and weak demand for its exports, and US tariffs are adding to its challenges.

There had been hopes that an upturn would gather pace this year, particularly due to a spending blitz pushed by Chancellor Friedrich Merz, but any recovery appears tentative so far.

Wednesday's data shows that manufacturing "remains weak, particularly in energy-intensive sectors", said the economy ministry in a statement.

"The recovery in industrial production in September cannot be interpreted as a sign of a fundamental turnaround."

September's positive reading also comes after a dire result in August, when the data was affected by one-off factors such as annual plant closures for holidays in the crucial auto sector, it said.

The auto industry saw a strong rebound in September, up over 12 percent, and there were also increases in the manufacture of computer, electronics and optical products, Destatis said.

There was a decrease in machinery and equipment manufacturing as well as in the construction sector.

ING bank economist Carsten Brzeski said Wednesday's factory data show "weak signs of life".

"Over the coming months, industrial production should show very tentative improvements. However, any of these improvements will be of a cyclical nature, coming from very low levels, and should not be mistaken for structural improvements."

After two straight years of recession, the German government is forecasting that the economy will eke out meagre growth of 0.2 percent in 2025.