FX.co ★ German Factory Orders Rise More than Expected

Germany's factory orders experienced a 1.5% increase month-on-month in October 2025, surpassing market expectations of 0.5%, though showing a deceleration from a revised 2.0% rise in the prior month. This latest data marked the second month in a row of growth, driven by a significant 87.1% surge in orders for aircraft, ships, trains, and military vehicles, complemented by an 11.9% increase in metal production and processing orders. Conversely, demand for electrical equipment experienced a notable decline of 16.2%. When broken down by category, orders for capital goods increased by 4.9%, whereas orders for intermediate goods and consumer goods declined by 3.4% and 2.2%, respectively. Domestic orders saw a substantial rise of 9.9%, while foreign demand decreased by 4.0%, primarily due to weaker markets outside the Eurozone, which fell by 6.5%. In contrast, Eurozone orders experienced a slight uptick of 0.1%. Excluding large-scale contracts, the overall orders saw an increase of 0.5%. Observing the three-month average from August to October, factory orders diminished by 0.5%, but when large contracts are excluded, they increased by 2.0%, indicating stable underlying demand.