German industry increased its revenue in the first quarter for the first time since 2023, but continued to cut jobs on a large scale, according to a study.

The study by consultancy EY, based on data from the Federal Statistical Office and seen by dpa, found that the number of people employed in industry fell to 5.3 million by the end of the first quarter.

That was down 2.3%, or 127,300 jobs, compared with the same period last year.

The automotive industry recorded the largest net job losses, at around 32,000, followed by mechanical engineering with 22,000 and metal production and processing with 8,800.

At the same time, EY sees signs of hope for Germany’s struggling industry, which has been weighed down by high energy and labour costs, competition from China and US tariffs.

Industrial revenue rose by 1.7% in the first quarter to just over €531 billion ($618 billion), the first year-on-year increase after 10 quarters of decline.

The main reason was an 18% rise in revenue in the metal sector, where exports grew by 28% year-on-year.

The automotive sector also posted a slight increase, at 2.1%, as did the electrical industry, at 1.4%.

“The coming months will show whether the growth in a few individual sectors is merely a flash in the pan or the start of a turnaround,” said Jan Brorhilker, managing partner at EY Germany.

Brorhilker expects further job losses, saying many sectors still have significant overcapacity.

At many companies, the debate was no longer just about savings programmes but also about the closure of entire plants, he said.