German Manufacturing Orders Decline in June, Driven by Lower Demand in Key Sectors
Preliminary data released Wednesday by the Statistical Federal Office (Destatis) reveals a 1.0 percent decrease in real incoming orders for the manufacturing sector in Germany during June 2025, adjusted for seasonal and calendar variations compared to May. Excluding large-scale orders, incoming orders rose slightly, by 0.5 percent, over the previous month.
Analyzing a three-month period, orders in the second quarter of 2025 showed an overall increase of 3.1 percent compared to the first quarter. However, excluding large orders, growth was minimal, rising a mere 0.1 percent. A revision of previously released figures for May indicated a 0.8 percent decline compared to April, a downward adjustment from the initial estimate of -1.4 percent, attributed to a late-reported large order in the miscellaneous vehicle construction segment.
The contraction in manufacturing orders for June was largely attributable to a sharp drop in new orders within the miscellaneous vehicle construction sector, encompassing items like aircraft, ships, trains and military vehicles. These orders declined significantly, experiencing a -23.1 percent decrease month-over-month after seasonal and calendar adjustments. Negative trends were also observed in the automotive industry (-7.6 percent) and the production of metal goods (-12.9 percent), further impacting the overall performance. The production of electrical equipment, however, provided a positive influence, with order intake rising by 23.5 percent.
Investment goods orders fell by 5.3 percent in June compared to the previous month. Consumer goods orders, in contrast, increased by 0.5 percent, while orders for intermediate goods saw a rise of 6.1 percent.
Foreign orders decreased by 3.0 percent in June. While orders from within the Eurozone increased by 5.2 percent, orders from outside the Eurozone fell by 7.8 percent. Domestic orders, however, rose by 2.2 percent.
Regarding revenue, preliminary data indicate a slight increase of 0.9 percent in real turnover within the manufacturing sector in June, compared to the previous month. However, compared to June of the previous year, turnover decreased by 1.2 percent when adjusted for calendar variations. A revision of May’s preliminary results revealed a 1.8 percent decline compared to April, revised from an earlier estimate of -1.9 percent.