FX.co ★ German Factory Orders Unexpectedly Rise

In April 2025, Germany experienced a 0.6% increase in factory orders compared to the previous month, surpassing market forecasts of a 1.0% drop. This growth marks a significant slowdown from the adjusted 3.6% rise observed in March. The unexpected uptick in orders provided some relief amid apprehensions that increased U.S. tariffs might heavily impact German export demand. Significant order increases were noted in sectors such as computer, electronic, and optical products (21.5%), as well as aircraft, ships, trains (7.1%), and fabricated metal products (4.4%). However, there were declines in orders for electrical equipment (-9.2%), machinery and equipment (-4.2%), and pharmaceuticals (-14.1%). Capital goods orders increased by 4.1%, while orders for intermediate goods (-3.4%) and consumer goods (-5.9%) saw decreases. Domestic demand grew by 2.2%, counterbalancing a 0.3% decrease in foreign orders, with orders from the euro-area rising by 0.5% and those from non-euro-area countries falling by 0.9%. Excluding large-scale orders, the overall order growth stood at 0.3%. Over the February to April period, new orders were up by 0.5% compared to the preceding three-month period.