New orders in the manufacturing sector: February 2025 (in real terms, provisional):
Unchanged (0.0%) from the previous month (seasonally and calendar-adjusted) and down 0.2% from the same month of the previous year (calendar-adjusted)
January 2025 (in real terms, provisional):
Down 5.5% from the previous month (seasonally and calendar-adjusted) and up 0.1% from the same month of the previous year (calendar-adjusted)
The German Federal Statistical Office (Destatis) reported that real new orders in the manufacturing sector in February 2025 remained unchanged compared to January 2025, seasonally and calendar-adjusted. However, when large-scale orders were excluded, orders decreased by 0.2%. A three-month comparison showed a 1.6% decrease in new orders compared to the previous three months. Excluding large-scale orders, new orders increased by 0.4%. After reviewing the data, it was found that new orders in January 2025 decreased by 5.5% compared to December 2024, while the provisional figure indicated a decline of 7.0%. This difference was due to delayed data reporting in industries such as basic metals, machinery and equipment manufacturing, and the automotive industry.
Conflicting trends across economic sectors:
The manufacturing sector saw mixed trends in orders across various economic sectors in February 2025. The overall result was negatively impacted by a decline in new orders in the metal products manufacturing sector, excluding machinery and equipment, which declined by 7.4% from the previous month, after season and calendar adjustments. The electrical equipment industry also saw a decline of 5.3%, and the pharmaceutical industry declined by 5.9%.
On the other hand, some sectors recorded an increase in new orders. Orders in the machinery and equipment manufacturing sector increased by 3.4%. Other transportation equipment (such as aircraft, ships, trains, and military vehicles) also saw a 3.8% increase. In the automotive industry, new orders rose 0.6%.
Capital goods and intermediate goods:
In February 2025, new orders for capital goods increased by 1.5% compared to the previous month. This increase indicates greater demand for products used in industrial and investment production, such as machinery and equipment that support the growth of other industries.
In contrast, new orders for intermediate goods decreased by 1.3%. Intermediate goods are those used as inputs in the production processes of final goods. This decrease reflects weaker demand for raw materials and intermediate products on which other industries depend.
Consumer goods also recorded a larger decline of 5.2%. This indicates a decline in demand for products intended for personal consumption, which may reflect fluctuations in consumer spending levels during this period.
Foreign Orders:
Foreign orders in the German manufacturing sector increased by 0.8% in February 2025 compared to the previous month. However, there were differences between orders from different regions. New orders from the eurozone decreased by 3.0%. In contrast, orders from outside the eurozone increased significantly by 3.4%. This disparity in external orders reflects a divergence in economic conditions within the eurozone compared to the rest of the world. It also suggests that global markets may exhibit different economic dynamics than those within the eurozone, which could impact Germany’s production and export strategy.
Manufacturing Turnover:
According to provisional figures, German manufacturing turnover increased slightly by 0.2% in February 2025 compared to the previous month. However, calendar-adjusted figures showed that sales volume decreased by 2.9% compared to February 2024.
On the other hand, a review of provisional data shows that sales volume in January 2025 decreased by 0.9% compared to December 2024. The “Machinery and Equipment Manufacturing” sector had a greater impact on these revisions, as this sector saw a slight increase of 0.4% according to the revised figures.
New orders in the manufacturing sector in January 2025: -7.0% compared to the previous month
Real (price-adjusted) new orders in the manufacturing sector fell by 7.0% month-on-month in January 2025 after seasonally and calendar-adjusted adjustments,
Excluding large-scale orders, new orders fell by 2.7% from the previous month.
A less volatile comparison between the past three months showed that new orders in the period from November 2024 to January 2025 fell by 2.4% from the previous three months; excluding large-scale orders, new orders rose by 1.0%. Following the revision of provisional data, new orders in December 2024 rose by 5.9% compared to November 2024 (provisional figure: +6.9%).
The negative development in new orders in the manufacturing sector in January 2025 was due to a significant decline in new orders in the “Manufacture of machinery and equipment” sector (-10.7% compared to the previous month after seasonal and calendar adjustment) and in the “Manufacture of other transport equipment” sector (aircraft, ships, trains, military vehicles; -17.6%). Several large-scale orders were registered in these two sectors during the previous month. The decline in new orders in the “Manufacture of computer, electronic and optical products” sector (-12.9%) also negatively impacted the overall result. Conversely, the increase in new orders in the “Manufacture of electrical equipment” sector (+4.8%) had a positive impact.
The figures show that the German manufacturing sector faces significant challenges, with the performance of various economic sectors varying. Although new orders in February 2025 remained stable compared to the previous month, the decline in some industries, such as the manufacture of metal products and the pharmaceutical industry, had a negative impact. On the other hand, there was a significant increase in orders in some sectors, particularly the automotive industry and the machinery and equipment industry. Despite the challenges, the data showed a slight increase in foreign orders, indicating some stability in the German economy despite domestic market volatility.
