Germany Factory Orders

Germany’s factory orders fell 0.8% month-on-month in August 2025, missing market expectations for a 1.4% rise and following a downwardly revised 2.7% drop in the previous month. It marked the fourth straight monthly decline, largely driven by a slump in the automotive sector (-6.4%). Demand also weakened for data processing, electronic and optical products (-11.5%) and pharmaceuticals (-13.5%). In contrast, orders rose for metal products (15.4%), other transport equipment (17.1%), and electrical equipment (7.2%). By category, demand contracted for capital goods (-1.5%) and consumer goods (-10.3%) but increased for intermediate goods (3.0%). Foreign orders dropped 4.1%, with decreases from both non-euro area (-5.0%) and euro area (-2.9%) markets, while domestic demand grew 4.7%. Excluding large-scale contracts, overall orders fell 3.3%. On a three-month average basis, factory orders were down 2.3% between June and August, highlighting persistent weakness in industrial activity.