Data from the German Federal Statistical Office show that industrial production fell 0.4 percent, which contradicts Reuters' forecast of an increase of 0.7 percent.
Analysts say the fall makes the economy more likely to contract in the fourth quarter, leading to a recession after falling domestic product in the third quarter.
As shown by the data , the December drop was caused by a decrease of more than four percent in the activity of the construction sector, which was not could be offset by a slight increase in industrial output as a whole.
The ministry said that the automotive sector, which had slowed down the economy in the past due to the introduction of new emission standards that pollute the environment, which ultimately led to a decrease in new vehicle registrations rebounded in December, and production rose more than 7 percent.
The November figure was revised to 1.3% from the previously announced 1.9% decline.
“The positive value of GDP in Q4 2018 looks unstable now,” said Thomas Gitsel of VP Bank Group. "Positive (industrial) indicators would reduce the likelihood of negative GDP in the fourth quarter."
