Production at German steel and metalworking plants was 1.0% lower last year than in 2024, according to Kallanisch from the Wirtschaftsverband Stahl- und Metallerarbeitung (WSM) industrial federation.
The fall in 2025 marks the fourth year of recession in a row, the federation notes. Compared to 2019, the year before Covid, production decreased by as much as 14.6%.
A positive detail highlighted by WSM is the improvement in business activity in the second half of the year, as a result of which production in the fourth quarter increased by 2.1% compared to the fourth quarter of 2024. Demand has also improved, although not in all sectors, WSM notes. This points to the arms and ammunition manufacturing segment, where orders have increased fivefold since the Russian invasion of Ukraine.
According to general economic data, production may increase by 1-2% this year, according to WSM. However, the report notes that this is more of a rise from a low level after a year-long decline, rather than a trend reversal.
It also notes that companies entered the year with a depressed mood. WSM refers to surveys on the state of the business climate, which show that estimates of both current conditions and expectations have declined.
The Federation suggests that this may be, at least in part, due to the unstable policy of the United States and, as a result, instability. Evidence of this is the decrease in capacity utilization from 74% in October to 72.4% in January.
Author: Christian Kel Germany
Kallanish.com
