Germany, manufacturing orders fall: -2.9% in July and -3.4% year-on-year

According to preliminary data from the Federal Statistical Office (Destatis), real new orders in Germany (net of prices) in the manufacturing sector decreased by 2.9 % in July 2025 compared to June 2025, net of seasonal and calendar effects. German manufacturing orders fell by 3.4 % year-on-year.

Excluding large orders, new orders increased by 0.7 % compared to the previous month. In the less volatile quarterly comparison, new orders from May to July this year increased by 0.2% compared to the previous three months; excluding large orders, they decreased by 1.3%. In June 2025, after revision of preliminary results, new orders fell by 0.2 % compared to May 2025 (preliminary figure: -1.0 %).

The latest data on manufacturing orders undermined optimism that the sector could soon emerge from three years of recession. "Volatility in order trends continues to be driven by high trade and geopolitical uncertainties," the Ministry of Economy said in a note. "Demand remains weak even after allowing for fluctuations and special effects," although there appear to be indications that "industrial demand has bottomed out."

The report highlights the challenges facing Europe's largest economy as it attempts to put a prolonged recession behind it, grappling with rising US tariffs and the Russian war in Ukraine. Although companies are increasingly optimistic that increased government spending can restore growth, they also continue to judge their current situation as difficult.

The EU's agreement with the US provides for 15% tariffs on most exports to the country, and officials are seeking to extend this level to cars, which are currently subject to higher duties. This would be a relief for an industry that has recently received a rare boost thanks to increased demand for electric vehicles.