Indicates a Decrease in New Orders for German Industry during June
In June 2025, the German industrial sector experienced a setback, with order intake decreasing across several key sectors. The automotive industry saw a 7.6% drop, while the manufacture of metal products experienced a more substantial decrease of 12.9%[1].
These declines are largely attributed to a sharp drop in orders from foreign markets, particularly for transport equipment and vehicles. The slowdown in the Eurozone's export-driven sectors, with Germany and Italy facing more challenges compared to resilient economies like Spain and France, is another significant factor[1].
The weakening demand from foreign countries has impacted Germany's export sectors, particularly vehicle construction. This aligns with a broader trend of economic downturns in key sectors such as automotive and metal fabrication[2].
However, there is a glimmer of hope. Export expectations of companies improved somewhat in July, with a 5.2% increase in orders from the Eurozone[1]. Additionally, the order volume increased by 0.5% in June, excluding large orders[1].
Despite these improvements, the Federal Ministry of Economics anticipates that the order intake will continue to fluctuate strongly due to persistent high trade and geopolitical uncertainty[1]. The order situation for the German industry worsened in June, with preliminary results showing a 1.0% decrease in orders compared to May[1].
The Federal Statistical Office revised its preliminary figures for May, indicating a decrease of only 0.8% in order intake, not the previously reported 1.4%[1]. Orders from countries outside the Eurozone decreased by 7.8%, while orders from within Germany increased by 2.2%[1].
Interestingly, companies in the manufacture of electrical equipment recorded an impressive increase of 23.5% in orders in June[1]. However, the order intake in the rest of the vehicle construction sector, which includes aircraft, ships, trains, and military vehicles, fell by 23.1% in June compared to the previous month[1].
The current decline in German industry orders reflects structural vulnerabilities in the country's traditionally strong export-driven manufacturing base, highlighting the need for strategic adjustments to navigate the evolving global economic landscape.
[1] Source: Federal Statistical Office of Germany [2] Source: German Economic Institute (IW) [3] Source: CDU Politician Katherina Reiche's House
Note: This article is generated by an AI model and may not be completely accurate or up-to-date. Always verify information from reliable sources before making decisions.
- In response to the declining order intake in key sectors like automotive and metal fabrication, the Federal Ministry of Economics is advocating for a review of the community policy, focusing on vocational training, to equip the workforce with the skills necessary for the changing industry demands.
- Given the current financial instability in the German industrial sector, particularly in vehicle construction and metal products, there is a growing need for a comprehensive employment policy to address job losses and stimulate employment opportunities, while also bolstering the sector's resilience in the face of geopolitical uncertainties.
