Industry Orders Rise Slightly

Industry Orders Rise Slightly

Germany’s manufacturing sector saw a modest increase in order backlogs during May 2025, according to preliminary data released Thursday by the Federal Statistical Office (Destatis). The real volume of orders in manufacturing, seasonally and calendar adjusted, rose by 0.4 percent compared to April. Year-on-year, the backlog of orders, calendar adjusted, increased by a more significant 4.7 percent.

The increase compared to the previous month was largely driven by growth in the ‘Other Transport Equipment’ segment, encompassing areas like aircraft, ships, trains and military vehicles, which saw a rise of 2.1 percent (seasonally and calendar adjusted). Positive contributions also came from the production of metal products, up 2.4 percent. However, a decline in the automotive industry (-1.4 percent) tempered the overall result.

Order inflow from domestic sources decreased slightly, falling by 0.3 percent in May compared to April. Conversely, orders originating from abroad experienced an increase of 0.8 percent.

A breakdown by manufactured goods category reveals varied performance. The volume of orders for intermediate goods saw a decrease of 0.2 percent. Manufacturers of capital goods witnessed a backlog increase of 0.6 percent, while producers of consumer goods saw a rise of 0.3 percent.

The order backlog ratio, a measure of how long manufacturers can continue production at the current rate, remained unchanged at 7.8 months compared to the previous month. Within this, the ratio for capital goods manufacturers remained steady at 10.7 months, while those producing intermediate goods held constant at 4.3 months and consumer goods producers remained at 3.6 months.