Forecasts significantly exceeded: German industry is overwhelmed with new orders:
Iran war, low water levels, and an already struggling German economy: there is ...
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German industry posts strong June order growthNew business rose 3.1 percent month on month, while inflation-adjusted manufacturing revenue fell 1.3 percent.
- According to the Federal Statistical Office, new business grew 3.1 percent in June from the previous month on the back of numerous large orders; economists had expected 0.3 percent, making it the second consecutive increase.
- Machinery orders rose 12.7 percent and orders for data-processing equipment and electronic and optical products increased 22.7 percent, while other vehicle manufacturing fell 41.7 percent; statisticians said data on large orders in that sector were incomplete.
- Foreign orders increased 0.2 percent overall, as orders from the eurozone fell 14 percent and those from other foreign markets rose 10.2 percent, while domestic orders grew 7.8 percent.
- Excluding large orders, total bookings declined 0.5 percent; in the three-month comparison, incoming orders in the second quarter were 1.3 percent above the previous quarter, while the figure excluding large orders was unchanged.
All told, the economy is performing somewhat better than was recently thought.— Jens-Oliver Niklasch, economist at Landesbank Baden-Württemberg (LBBW).
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Key FactsGerman Industry Faces Sharp Order Decline
Mar 9, 2026 · Reading time: ~45 sec.
Summary created with AI assistance · Source: spiegel.de
Summary created with AI assistance · Source: spiegel.de
- New business in the German industrial sector dropped 11.1 percent in January 2026 compared to December, the largest decline in two years.
- The sharp decrease was driven by the absence of large contracts that had boosted growth by 6.4 percent in December.
- Domestic demand plunged by 16.2 percent while foreign demand fell 7.1 percent, affecting both Eurozone and non-Eurozone markets.
- Rising crude oil prices and geopolitical tensions raise concerns about a delayed recovery for the German industry.
The decline was to be expected; in terms of its magnitude, it's a shock.— Alexander Krüger, chief economist at Hauck Aufhäuser Lampe Privatbank, commented on the drop in industrial orders at the start of the year.
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