German Industry Faces Sharpest Drop in Orders in a Year

January sees a 7% decline in industrial orders, driven by reduced domestic demand and uncertainty over potential US tariffs.

The German industrial sector experienced a 7% drop in orders in January 2025, the steepest decline in a year, following a revised growth of 5.9% in December 2024.
Key sectors such as machinery and vehicle manufacturing saw significant declines, with machinery orders falling 10.7% and vehicle-related orders dropping 17.6%.
Domestic orders plunged by 13.2%, while foreign demand decreased by 2.3%, reflecting broader economic uncertainties.
Analysts attribute the decline partly to volatility caused by large December orders and concerns over potential 25% US tariffs on European exports.
Despite the downturn, experts note a potential stabilization in the longer-term trend, though recovery is unlikely before the latter half of 2025.