Production increase registered in Germany prior to the second lockdown
In a positive turn of events, the German economy experienced a 2.1% increase in overall production for September 2020, encompassing both the manufacturing and non-manufacturing sectors. This growth was evident across various industries, with energy production outside of the manufacturing sector witnessing a 4.0% rise compared to the previous month.
Within the manufacturing sector, production showed an increase of 2.3% compared to August 2020. The production of capital goods, in particular, saw a significant boost with a 4.3% rise. However, the production of consumer goods decreased by 1.1%, and intermediate goods remained unchanged.
The automotive industry, which has been significantly impacted by the COVID-19 pandemic, showed a positive trend. September 2020 saw a 5.2% increase in production compared to August 2020, although it still remained around 5.8% below the level of February 2020.
Since the onset of the pandemic in February 2020, the manufacturing sector in Germany, particularly the automotive industry, has experienced fluctuations. The initial crisis phase led to a decline in automotive production, but by May 2025, German domestic passenger car production rebounded strongly, increasing by 19% year-on-year to 363,600 units, and exports rose by 9% to 283,700 units compared to the previous year.
Despite setbacks, including a second lockdown earlier in the pandemic, the automotive sector has shown resilience. Compared to pre-crisis levels (pre-February 2020), production has not only recovered but moderately grown by 2025, indicating an overall positive trend post-lockdown.
Other vehicle registrations in May 2025 also reflect mixed outcomes. While truck registrations were down 9.6% year-on-year, bus registrations saw a strong increase of 52.8%.
The recovery was not limited to the automotive sector. Manufacturing production in Germany has had modest month-to-month changes in 2025. For example, in April 2025, overall manufacturing production recorded a slight decline of 1.4% compared to the previous month, but new orders were up slightly, signaling cautious optimism in the sector.
Looking at October 2020, German production increased by 3.2% compared to the previous month, after adjustments for seasonal and calendar effects. However, production was still 4.9% lower than in February 2020, before the coronavirus pandemic restrictions began.
In conclusion, the German manufacturing and automotive industries, initially disrupted by the pandemic and lockdowns, have shown a robust recovery by mid-2025, with automotive production surpassing pre-crisis output, reflecting resilience despite challenges like the second lockdown.
In the recovery period post-lockdown by mid-2025, the German automotive sector, which had been significantly impacted by the pandemic, not only recovered but moderately grew, indicating a positive trend compared to pre-crisis levels. This resurgence was not limited to the automotive sector, as the financing of such recovery efforts might have been supported by the other industry of finance, which could have provided necessary capital for the sector's growth. Consequently, the finance industry played a crucial role in the revitalization of the German manufacturing and automotive industries.
