German Factory Orders Fall More than Expected

Germany’s factory orders dropped 3.8% mom in April 2026, reversing a downwardly revised 4.5% increase in the prior month and missing market estimates for a 1.2% decline. The decrease marked the second monthly fall so far this year, reflecting weaker demand in the automotive industry (-5.3%), electrical equipment (-16.3%), and mechanical engineering (-7.4%). Orders declined across all major categories, including consumer goods (-6.7%), intermediate goods (-4.4%), and capital goods (-2.9%). Foreign demand weakened 4.2%, largely due to an 11.1% plunge in orders from the euro area, while orders from non-euro area countries grew 0.8%. Domestic orders also contracted by 2.9%. Excluding large-scale contracts, factory orders fell 3.8%. On a less volatile basis, new orders in the February-April period were 3.1% lower than in the previous three months. However, excluding large orders, new business rose 3.5%, suggesting underlying demand remained somewhat more resilient.

Germany’s factory orders surged 5.0% mom in March 2026, sharply accelerating from an upwardly revised 1.4% growth in the prior month and easily topping market expectations of a 1% increase. The upturn was boosted by a positive trend in new orders across almost all economic sectors, including electrical equipment (21.5%), data processing equipment, electronic and optical products (14.4%), and mechanical engineering (6.9%). Order intake increased for all components, notably intermediate goods (9.2%), consumer goods (7.3%), and capital goods (2.1%). Foreign orders jumped 5.6%, boosted by demand from the euro area (10.1%) and non-euro area markets (2.7%). In addition, domestic orders grew 4.0%. Excluding large-scale contracts, total orders rose 5.1%, reaching their highest level since February 2023. On a less volatile basis, new orders in Q1 2026 fell 4.1% from the prior period, due to a very high volume of large orders at the end of 2025. Excluding large orders, they increased by 1.6%.

Germany’s factory orders rose 0.9% mom in February 2026, rebounding from an 11.1% slump in the prior month but missing market expectations of a 2% increase. The recovery was driven mainly by the automotive sector, where orders grew (3.8%). Strong gains were also seen in textiles (45.2%) and metal production and processing (3.7%). In contrast, orders in other vehicle manufacturing, including aircraft, ships, trains, and military vehicles, plunged 25.9%. By category, demand increased across capital goods (0.2%), intermediate goods (1.4%), and consumer goods (4.5%). Foreign orders rose (4.7%), led by the euro area (6.7%) and non-euro area markets (3.5%). However, domestic orders fell (4.4%). Excluding large-scale contracts, total orders rose (3.5%). On a less volatile basis, new orders from December 2025 to February 2026 were 2.0% higher than in the previous three-month period. However, excluding large orders, they fell 0.8%.