Latest figures from the Federal Statistical Office
In a surprising turn of events, the German manufacturing sector reported a decline in order intake for July 2025. According to recent data, the overall order intake dropped by 2.9%, with the price-adjusted order intake decreasing by 2.9% compared to June 2025.
The decline in foreign orders was a significant contributing factor to this overall result. Orders from outside the Eurozone fell by 2.8%, while orders from the Eurozone decreased by 3.8%. This decline in foreign orders was due to a decrease in orders from both the Eurozone and outside the Eurozone.
The automotive industry, typically a key player in the German manufacturing sector, saw an increase in order intake of 6.5% in the same period. However, this increase was not enough to offset the overall decline. In contrast, no company or industry in the German automotive sector achieved a significant order increase of +6.5%, as reported for the Czech industry.
The decline in the order intake in July is primarily due to a 38.6% decrease in new orders in the 'Other Vehicle Construction' sector. This sector saw a significant drop due to a high volume of large orders in June 2025. The production of electrical equipment also contributed negatively to the overall result, with a 16.8% decrease in orders.
On a positive note, the order intake for consumer goods increased by 4.3% in July 2025 compared to the previous month. The order intake for investment goods decreased by 2.4%, and the order intake for intermediate goods decreased by 5.3%.
Domestic orders also played a role in the overall decline, falling by 2.5% in July 2025. In the three-month comparison from May 2025 to July 2025, the order intake was 0.2% higher than in the previous three months, excluding large orders. However, in the same three-month comparison, the order intake decreased by 1.3% when considering only small orders.
The market expectation for the July order intake was a 0.5% increase, but the sector fell short of this expectation. The decline in the order intake in July for all goods categories combined was a notable deviation from the positive trends seen in recent months.
As the German manufacturing sector moves forward, it will be interesting to see how it navigates these challenges and works towards recovery.
