German Industrial Output Plummets, Recession Fears Intensify

German industrial production fell by 3.4% in March, more than expected, due to weak performance by the automotive sector, raising concerns of a recession in Europe's largest economy. The manufacture of motor vehicles and automotive parts fell by 6.5% on the previous month, while production in machinery and equipment fell by 3.4%. German industrial orders also fell by 10.7% in March, posting the largest month-on-month decline since 2020. Retail sales and exports also dropped sharply in March, increasing the odds of a downward revision to first-quarter gross domestic product.