Industrial production in the German manufacturing sector declined 2.5% on a monthly basis in September, the country's Federal Statistical Office Destatis said in a provisional report released on Thursday. The production slowed by more than expected.

Compared to the corresponding month last year, the figure dropped 4.6%. In September, automotive industry production suffered a sharp 7.8% drop from the previous month, while the chemical sector's output fell 4.3%. In contrast, mechanical engineering showed resilience, posting a modest 1.7% increase.

Meanwhile, production of intermediate goods decreased by 1.6%, and consumer goods output slipped by 1.4%.