BERLIN, Oct. 8 (Xinhua) -- Germany's industrial output fell by 4.3 percent in August compared with the previous month, data from the Federal Statistical Office (Destatis) showed Wednesday, as it was dragged down by a sharp drop in car production.

Most industrial sectors reported lower output. Production in the automotive sector, Germany's largest industrial branch, slumped by 18.5 percent month-on-month. The statistics office said the steep decline was partly due to factory shutdowns during the summer holidays and production changeovers.

Among other major industrial pillars, machinery and equipment output fell 6.2 percent, while pharmaceutical production dropped by 10.3 percent in August.

Analysts warned that the latest downturn in output, combined with four consecutive months of declining industrial orders, suggests that the rebound seen in the first half of the year was largely driven by temporary front-loading ahead of U.S. tariff hikes.

Carsten Brzeski, global head of macro at ING Research, said that industrial production in Germany remains some 15 percent below its pre-pandemic level, and that capacity utilization in manufacturing has stayed weak, underscoring the risk of a technical recession.

In a statement on Wednesday, the Federal Ministry for Economic Affairs and Energy said that persistent geopolitical and trade policy uncertainties continue to weigh on Germany's industrial output. "Weak foreign demand is damping business activity," it added.

Weakness in Germany's car sector extends beyond the production slump. Separate data released by Destatis showed that industrial orders fell for the fourth consecutive month in August, with order intake in the automotive sector down 6.4 percent on the month.

A survey released this week by the German Association of the Automotive Industry (VDA) found that order shortages among medium-sized automotive companies have reached record levels. One in two respondents rated their current business situation as "poor" or "very poor," up from 42 percent in May. In addition, 67 percent of companies said the new U.S. tariffs on European Union imports were a major burden. ■