FX.co ★ German Factory Orders Rise More than Estimated

In March 2025, Germany saw a significant increase in factory orders, which rose by 3.6% compared to the previous month. This growth far exceeded market predictions, which had anticipated a 1.3% rise, and marks a notable recovery from the stagnation observed in February. This increase also represents the most substantial growth since December, with various sectors experiencing considerable gains. Notably, electrical equipment orders surged by 14.5%, machinery and equipment by 5.3%, and orders in the aircraft, ships, trains, and military vehicles category rose by 13.0%. Similarly, the automotive sector saw a 2.5% rise, and the pharmaceutical industry experienced a 17.3% increase in orders. Looking further into the types of goods, orders for consumer goods climbed by 8.7%, capital goods increased by 3.7%, and intermediate goods went up by 2.5%. On the domestic front, orders grew by 2.0%, while international demand propelled foreign orders to a 4.7% increase, fueled by an 8.0% uptick from other euro area countries and a 2.8% rise from non-euro area nations. Excluding large-scale orders, the increase in incoming orders stood at 3.2% compared to January. Nevertheless, when examining the first quarter of 2025, new orders showed a 2.3% decline compared to the preceding quarter.