The country saw a 1.6% decline in industrial production on an annual basis in July, Anadolu Agency reported.
Destatis revised June's month-on-month production figure to flat from a previous estimate of a 0.2% increase.
The automotive industry recorded a significant 9.2% monthly drop in production in July.
The German Association of the Automotive Industry attributed this sharp decline to a multiweek production shutdown.
Energy production increased 4.7% in July, driven primarily by electricity generation from wind power and photovoltaics.
Production in industry excluding energy and construction decreased 2.2% from June.
The production of capital goods fell 3.4%, consumer goods dropped 2.2% and investment goods decreased 0.2% in July.
Outside the industrial sector, production in construction grew 0.9% month-on-month.
Energy-intensive industrial branches saw a 1.7% decrease in production in July compared with June.
A less volatile three-month comparison revealed that overall industrial production grew 0.4% from May to July compared with the previous three months.