By Micah Jonah
January 9, 2026
Germany’s export sector faltered unexpectedly in November, even as industrial output registered a modest rise, signaling mixed signals for Europe’s largest economy.
Data released on Friday by the Federal Statistics Office showed that German exports fell 2.5% compared with October, dragged down by weaker shipments to the European Union and the United States. Exports to the U.S. dropped sharply on a year-on-year basis, underscoring ongoing tensions in one of Germany’s key markets. Meanwhile, imports from China rose, reflecting shifting trade flows amid global tariff measures.
“The slowdown in exports highlights the challenges facing Germany’s traditional growth engines,” said Marc Schattenberg, an economist at Deutsche Bank Research.
Despite the export decline, Germany’s industrial production grew by 0.8% in November, marking the third consecutive monthly gain, beating expectations of a 0.4% drop. Industrial orders climbed 5.6% on the month, buoyed by large-scale projects.
Economists remain cautious about the sustainability of the improvement. Franziska Palmas of Capital Economics noted that structural headwinds, tougher international trading conditions could weigh on industrial output in the months ahead.
Germany’s trade surplus narrowed to 13.1 billion euros in November from 17.2 billion euros in October, reflecting rising imports and softer export performance. Exports to China increased 3.4%, while imports from the country jumped 8%.
“The relationship with the U.S., our largest export partner, continues to pose difficulties,” said Volker Treier, head of foreign trade at the German Chamber of Commerce.
“China has once again emerged as a critical trading partner, but challenges remain for German industry on multiple fronts. ”($1 = 0.8585 euros)
