TheJakartaPost

Please Update your browser

Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.

Jakarta Post

German factory orders down 7%, marking largest fall in a year

Agencies
Fri, March 7, 2025 Published on Mar. 7, 2025 Published on 2025-03-07T18:08:12+07:00

Change text size

Gift Premium Articles
to Anyone

Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
German factory orders down 7%, marking largest fall in a year An aircraft stands on the ground at a factory of aerospace manufacturer Elbe Flugzeugwerke GmbH in Dresden, eastern Germany, on Feb. 29, 2024. (AFP/Ebrahim Noroozi )

G

erman industrial orders in January posted their biggest monthly fall in a year, data showed Friday, underlining the challenges faced by Europe's top economy before a new government takes office.

New orders, an indicator of future business activity, fell seven percent month-on-month, according to preliminary data from the federal statistics agency Destatis.

That was a far greater fall than the 2.5 percent expected by analysts polled by financial data firm FactSet and the biggest drop since January 2024.

A Reuters poll of analysts had pointed to a fall of 2.8 percent.

At the same time, December's rise was revised downward to 5.9 percent from a 6.9 percent increase.

The December orders had risen significantly more than expected on a burst of demand for aircraft, ships, trains and military vehicles.

Prospects

Every Monday

With exclusive interviews and in-depth coverage of the region's most pressing business issues, "Prospects" is the go-to source for staying ahead of the curve in Indonesia's rapidly evolving business landscape.

By registering, you agree with The Jakarta Post's

Thank You

for signing up our newsletter!

Please check your email for your newsletter subscription.

View More Newsletter

Large one-off orders mean the data can vary from month to month. 

A less volatile three-month comparison nevertheless showed orders falling 2.4 percent between November and January, Destatis said.

Overall, industrial orders are almost 20 percent down on their 2021 level.

LBBW bank analyst Jens-Oliver Niklasch said the figures showed continued stagnation for the German economy, noting that orders from within Germany fell even further than orders from outside the country.

Calling the figures "another sobering start to the year," he said they represented "a volatile sideways movement at a low level".

Weak global demand, fierce competition from China and high energy prices have battered Germany's industrial sector, which accounts for about one fifth of its economic output.

US President Donald Trump has vowed to slap tariffs on the European Union, which could further hit Germany's export-driven economy.

Many economists hope that a 500-billion-euro (US$543 billion) infrastructure fund, touted by Germany's likely next chancellor Friedrich Merz, could help boost demand and get Germany's economy back on its feet.

Merz, whose conservatives won elections last month, are now in talks with the Social Democrats of outgoing Chancellor Olaf Scholz towards building a new coalition government, which Merz has said he hopes will take over from around Easter in April.

Your Opinion Matters

Share your experiences, suggestions, and any issues you've encountered on The Jakarta Post. We're here to listen.

Enter at least 30 characters
0 / 30

Thank You

Thank you for sharing your thoughts. We appreciate your feedback.

Share options

Quickly share this news with your network—keep everyone informed with just a single click!

Change text size options

Customize your reading experience by adjusting the text size to small, medium, or large—find what’s most comfortable for you.

Gift Premium Articles
to Anyone

Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!

Continue in the app

Get the best experience—faster access, exclusive features, and a seamless way to stay updated.