German Industry Orders Fall in June
Economy / Finance

German Industry Orders Fall in June

German manufacturing orders experienced a decline in June 2025, according to preliminary data released by the Statistical Federal Office (Destatis) on Wednesday. Real incoming orders in the manufacturing sector decreased by 1.0 percent when adjusted for seasonal and calendar variations compared to May. Excluding large-scale orders, the incoming order volume was 0.5 percent higher than the previous month.

A three-month comparison reveals a more positive trend, with incoming orders in the second quarter of 2025 rising by 3.1 percent compared to the first quarter. Stripping out large orders, the increase was a more modest 0.1 percent. A previous decline in May, initially reported at 1.4 percent, was revised downwards to 0.8 percent following the incorporation of a delayed large-scale order within the broader vehicle manufacturing segment.

The June decline primarily reflects a significant drop in new orders within the “Other Transport Equipment” sector, which encompasses aircraft, ships, trains and military vehicles – experiencing a seasonally and calendar-adjusted decrease of 23.1 percent compared to May. Contributory factors included contractions in orders for the automotive industry (-7.6 percent) and the production of metal products (-12.9 percent). A notable increase in orders for electrical equipment (+23.5 percent) partially mitigated the overall negative impact.

Investment goods orders decreased by 5.3 percent in June, while consumer goods orders saw a slight increase of 0.5 percent. Orders for capital goods rose by 6.1 percent.

Foreign orders decreased by 3.0 percent in June. Orders originating from within the Eurozone increased by 5.2 percent, contrasting with a 7.8 percent drop in orders from outside the Eurozone. Domestic orders, however, experienced a rise of 2.2 percent.

Regarding turnover, the real turnover in the manufacturing sector increased by a preliminary 0.9 percent in June compared to the previous month. However, when seasonally and calendar-adjusted against the same period last year, turnover decreased by 1.2 percent. A previously reported decline of 1.9 percent in May compared to April was revised to 1.8 percent, influenced by the inclusion of newly reported data.