The report highlights that German industrial companies generated revenues of more than 533 billion euros ($623.98 billion) in the second quarter of 2025. This marked a 2.1% decline compared with the same period last year.

The latest drop comes after a 0.2% fall in the first quarter, showing that the sector’s downturn is gaining momentum and raising concerns about Germany’s economic resilience.

The number of people employed in German industry also declined by 2.1% in the second quarter, to 5.43 million. Compared to six years ago, the workforce contracted by 4.3%, with some 245,500 jobs lost since 2019, EY said.

The sharpest fall in jobs was seen in car manufacturing, down 6.7% in the second quarter. In absolute terms, that amounted to around 51,500 jobs lost in a year.

Read more: Pakistani students in USA face visa risk over pro-Palestinian

Germany s carmakers are battling with stiff competition from Asia, a costly transition to electric vehicles and high U.S. import tariffs, with Volkswagen, Mercedes (MBGn.DE), opens new tab and supplier Continental among the companies cutting jobs.

While the United States remains the most important foreign market for German industrial goods, exports to the country slumped by 10% in the second quarter, the data showed. Exports to China were down 14%.

($1 = 0.8542 euros)