Manufacturing Orders Grow in May, Driven by Machinery and Tech Sectors
Economy / Finance

Manufacturing Orders Grow in May, Driven by Machinery and Tech Sectors

According to the Federal Statistical Office (Destatis), the real (price-adjusted) order backlog in manufacturing saw a 1.7 percent increase in May 2026 compared to April 2026, after seasonal and calendar adjustments. Furthermore, when compared to the same month last year, May 2025, the order backlog increased by 9.5 percent after calendar adjustments.

This development in May 2026 was primarily driven by growth in the mechanical engineering sector, which rose 3.3 percent month-on-month (seasonally and calendar-adjusted). The positive overall result was also boosted by a 3.0 percent increase in the production of data processing equipment, electronic, and optical products. However, the automotive industry saw a decline in its order backlog of 0.8 percent.

Regarding the source of the orders, Destatis reported that domestic orders grew by 0.9 percent from April 2026 to May 2026, while international orders rose by 2.0 percent.

Looking at different industrial sectors, the order backlog grew by 1.6 percent for manufacturers of capital goods compared to April 2026, and by 1.2 percent for manufacturers of intermediate goods. The consumer goods sector experienced a notable increase of 3.6 percent in its order backlog.

In May 2026, the average duration of the order backlog reached 8.9 months, up from 8.8 months in April 2026. While the backlog duration for manufacturers of intermediate goods remained constant at 4.6 months, manufacturers of capital goods saw an increase in this duration to 12.4 months (up from 12.2 months in April 2026). Manufacturers of consumer goods also reported an increase in duration, reaching 4.2 months (up from 4.0 months in April 2026). This duration indicates how long businesses would remain fully utilized completing current orders, assuming constant sales and no new orders. It is calculated by dividing the current order backlog by the average turnover over the past twelve months within the relevant industry.