German Factory Orders Rise More than Estimated

Germany's factory orders rose 2.5% mom in July 2026, easing from an upwardly revised 3.7% gain in the previous month but outperforming market expectations of 0.3%. It was the third straight month of increase, mainly driven by large orders for shipbuilding, rail vehicle construction, and aircraft manufacturing (126.4%). Meanwhile, bookings for the automotive industry declined 12.5%. Capital goods (2.4%) and intermediate goods (4.3%) rose, while consumer goods slipped (-4.8%). Domestic demand surged (9.1%), while foreign orders dropped 2.1%, dragged by a 10.1% fall in orders from non-euro area countries that offset a 12.1% surge from the euro area. Excluding large-scale contracts, orders were 1.4% lower. On a less volatile three-month basis, demand increased 2.9% in May-July from the prior three months, though they dipped 2.2% when large orders were excluded.

Germany's factory orders rose 3.1% mom in June 2026, picking up from a downwardly revised figure in May and easily beating market estimates of 0.3%. It was the strongest monthly growth since March, driven by robust demand for processing equipment and electronics and opticals (22.7%) as well as mechanical engineering (12.7%), with some firms noting large orders. Orders in the automotive industry also grew 3.8%. In contrast, bookings for aircraft, ships, trains, and military vehicles plunged 41.7% after a strong May. Capital goods (6.4%) and consumer goods (4.2%) rose, while intermediate goods fell (-2.5%). Domestic demand surged (7.8%), while foreign orders edged up 0.2%, lifted by a 10.2% jump in orders from non-euro area countries that offset a 14.0% fall from the euro area. Excluding large-scale contracts, orders fell 0.5%. On a less volatile three-month basis, demand gained 1.3% in April-June from the prior three months, though they were unchanged when large orders were excluded.

Germany's factory orders rose 1.9% month-over-month in May 2026, rebounding from a downwardly revised 3.2% drop in April and beating market estimates for a 1.2% gain. The recovery was driven mainly by large-scale orders for aircraft, ships, trains, and military vehicles, which jumped 85.0%. Demand also grew for electrical equipment (5.7%) and mechanical engineering (3.7%). However, orders declined in the automotive industry (-3.8%) and data processing, electronic, and optical products (-7.8%). Orders rose for capital goods (2.2%), consumer goods (2.4%), and intermediate goods (1.4%). Foreign demand gained 2.2%, supported by an 11.2% surge in orders from the euro area, while orders from non-euro area countries fell 3.2%. Domestic orders also went up 1.3%. Excluding large-scale contracts, orders still rose a solid 1.0%. However, on a less volatile three-month basis, new orders in March-May eased 0.2% from the prior three months, though they were up 4.1% when large orders were excluded.