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German Factory Orders Jump 5.6% in November on Large, Defense-Related Deals

Economists tie the surge to public investment and defense procurement, warning that weak private demand keeps the outlook fragile.

Overview

  • Incoming orders rose 5.6% month over month in November 2025, the third straight gain, while excluding large orders they increased 0.7%, according to Destatis.
  • Big-ticket demand in metal products (+25.3%) and other vehicle construction—including aircraft, ships, trains and military vehicles (+12.3%)—drove the headline rise.
  • Domestic orders climbed 6.5% and Eurozone demand rose 8.2% as overall foreign bookings advanced 4.9%; manufacturing revenue was up 2.7% on the month.
  • In the three-month view, orders were 4.0% higher than the prior period (2.1% without large orders), signaling a tentative improvement beyond a single month’s spike.
  • Analysts say rising public spending and defense procurement are lifting order books, but IMK flags consumption risks from social-policy cut debates and other studies point to trade headwinds and structural competitiveness concerns.