06.08.202606:34:34UTC+00German Factory Orders Rise More than Expected

Germany’s factory orders rose 3.1% month-on-month in June 2026, accelerating from a downwardly revised reading in May and far exceeding market expectations of a 0.3% increase. This marked the strongest monthly gain since March and was driven primarily by robust demand for processing equipment, electronics and optical products (up 22.7%), as well as mechanical engineering (up 12.7%), with some companies reporting major individual orders.

Orders in the automotive sector also advanced, rising 3.8%. By contrast, bookings for aircraft, ships, trains, and military vehicles slumped 41.7% following a very strong performance in May. Among main categories, capital goods orders climbed 6.4% and consumer goods orders increased 4.2%, while orders for intermediate goods declined 2.5%.

On the demand side, domestic orders jumped 7.8%. Foreign demand edged up 0.2%, as a 10.2% increase in orders from non-euro area countries more than offset a 14.0% drop in orders from euro area partners. Excluding large-scale contracts, total orders were up a more moderate 0.5%.

Looking at the less volatile three-month comparison, overall demand in the April–June period was 1.3% higher than in the previous three months. However, when large orders are excluded, demand over the same period was essentially unchanged.