Factory orders in Germany dropped by 1.4% month-over-month in May 2025, missing market forecasts of a 0.1% decline and reversing an upwardly revised 1.6% rise in the previous month. It was the first drop in three months, weighed heavily by a 17.7% plunge in orders for computer, electronic, and optical products following several large-scale orders in April. Demand also weakened for electrical equipment (-6.2%) and basic metals (-5.1%).
In contrast, orders rose for fabricated metal products (18.2%) and other transport equipment (6.8%). Capital goods orders dropped 4.1%, and intermediate goods fell 3.4%, while consumer goods rose 3.1%. Domestic orders slumped 7.8%, offsetting a 2.9% rise in foreign demand, which was driven by a 9.0% jump in non-euro area orders, despite a 6.5% fall from the eurozone. Excluding large-scale orders, overall demand fell 3.1%. On a less volatile three-month basis, factory orders rose 2.1% during March–May 2025, supported in part by the 90-day trade truce.
