BERLIN, 5th September, 2025 (WAM) - German factory orders unexpectedly slumped the most since January, undermining optimism that the sector can soon emerge from three years of recession.
Demand dropped 2.9% in July from the previous month, driven by declines in large-scale orders, the statistics office said Friday. Economists polled by Bloomberg had predicted a 0.5% gain. Without major orders, there would have been a 0.7% increase.
"Incoming orders have now fallen for the third month in a row, and institutes have revised down their growth forecasts for this year and next," Economy Minister Katherina Reiche said in a statement.
"No further warning signals are needed to recognise that we must now act decisively and consistently align our entire policy with competitiveness - in energy costs, non-wage labor costs, and the reduction of bureaucracy, both in Germany and in Europe. It's about jobs and preserving locations."
