German factory orders stagnate in February, missing rebound forecasts

By Tuba Sahin

German factory orders remained unchanged in February compared to the previous month, falling short of market expectations for a rebound in industrial demand, according to official data released Friday.

Analysts had projected a 3.4% month-on-month increase, but figures from the Federal Statistical Office (Destatis) showed no growth, highlighting continued weakness in Europe’s largest economy.

The stagnation was largely driven by a sharp 7.4% monthly decline in new orders for fabricated metal products (excluding machinery and equipment). The electrical equipment sector also posted a 5.3% decrease, while the pharmaceutical industry saw orders fall by 5.9%.

In contrast, some sectors showed positive momentum. Orders in the machinery and equipment industry rose 3.4%, and the manufacture of other transport equipment—including aircraft, ships, trains, and military vehicles—saw a 3.8% increase.

Germany's vital automotive industry recorded a modest gain of 0.6%, offering a slight boost to the overall figure.

Year-on-year, adjusted for calendar effects, factory orders declined by 0.2% in February.