06.07.202606:17:05UTC+00German Factory Orders Rise More than Expected

Germany’s factory orders increased by 1.9% month-over-month in May 2026, rebounding from a downwardly revised 3.2% decline in April and exceeding market expectations of a 1.2% rise. The upturn was driven primarily by a surge in large-scale orders for aircraft, ships, trains, and military vehicles, which leapt 85.0%. Demand also strengthened for electrical equipment (up 5.7%) and mechanical engineering (up 3.7%).

By contrast, orders fell in the automotive sector (down 3.8%) and in data processing, electronic, and optical products (down 7.8%). Across product categories, orders rose for capital goods (2.2%), consumer goods (2.4%), and intermediate goods (1.4%).

Foreign demand increased by 2.2%, supported by an 11.2% jump in orders from the euro area, while orders from non-euro area countries declined 3.2%. Domestic orders also grew, rising 1.3%. Even when large-scale contracts are excluded, orders still posted a solid 1.0% gain.

On a less volatile three-month comparison, however, new orders in the March–May period edged down 0.2% versus the previous three months. Excluding large-scale orders, they were 4.1% higher over the same period.