Particle.news
Download on the App Store

German Factory Orders Drop 2.9% in July, Skewed by Transport Slump

A plunge in large transport equipment bookings drove the headline decline, masking steadier underlying demand.

A general view of a production line of German car manufacturer Mercedes-Benz at a factory, in Rastatt, Germany, June 4, 2025. REUTERS/Christoph Steitz/File Photo
German industry has been stuck in a long downturn

Overview

  • Destatis reported seasonally and calendar-adjusted new orders fell 2.9% in July after a 0.2% decrease in June.
  • Excluding large-scale contracts, orders rose 0.7% on the month, suggesting a firmer underlying picture than the headline.
  • The "other transport equipment" category, including aircraft, ships and rail, fell 38.6% and accounted for most of the drop.
  • On a three-month view, orders in May through July were 0.2% higher than in the previous three months.
  • Economists polled by FactSet had expected a 0.7% increase, and Destatis said both domestic and foreign demand weakened, including a 3.8% decline from the euro area.