07:35 AM EST, 11/06/2025 (MT Newswires) -- Thursday's figure appears to be good news for the German economy only at first glance as industrial production (IP) rose by 1.3% month over month in September compared with the previous month, while the manufacturing sector even recorded an increase of 1.9% month over month, said Commerzbank.

However, these gains only partially offset the slump in August, wrote the bank in a note to clients.

The automotive industry is primarily responsible for the sharp fluctuations in August and September, stated Commerzbank. Factory holidays were more frequent than usual in August, meaning that the resulting production restrictions weren't completely filtered out by seasonal adjustment.

On average, production in other industrial sectors actually fell slightly compared with August, meaning that the trend here continues to point slightly downward, added the bank.

Thursday's figures show a 0.7% decline in production for industry as a whole in Q3, with the decline for manufacturing slightly stronger at 0.9%. As such, industry clearly contributed significantly to the stagnation of the German economy in Q3, according to Commerzbank.

The stagnant order intake to date gives little hope that this will change in the final quarter of 2025. The German government's debt-financed fiscal package isn't expected to boost demand until next year, pointed out the bank.

In addition, the resulting upturn in demand is unlikely to prove sustainable as long as the structural problems of the German economy aren't addressed comprehensively.