German Factory Orders Unexpectedly Fall

2025-08-06 06:16 By Farida Husna 1 min. read

Factory orders in Germany dropped 1.0% mom in June 2025, missing market consensus of a 1.0% increase and following a downwardly revised 0.8% fall in May.

This marked the second straight monthly decline, largely driven by a sharp 23.1% plunge in orders for aircraft, ships, trains, and military vehicles.

Demand also weakened for the automotive sector (-7.6%) and fabricated metal products (-12.9%).

In contrast, orders surged for electrical equipment (23.5%).

Capital goods orders fell 5.3%, while orders grew for intermediate goods (6.1%) and consumer goods (0.5%).

Foreign demand shrank 3.0%, with orders from outside the euro area down 7.8%, offset slightly by a 5.2% rise in orders from within the bloc.

Meanwhile, domestic orders rose 2.2%.

Excluding large-scale orders, overall demand rose 0.5%.

On a less volatile three-month average, factory orders increased 3.1% in Q2 2025, supported by front-loaded demand ahead of anticipated global tariff hikes and a rebound in euro area trade activity.



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