German manufacturing orders drop 7% in January 2025: Destatis

Real (price-adjusted) new orders in Germany's manufacturing sector fell by 7.0 per cent in January 2025 compared to the previous month, according to provisional data released by the Federal Statistical Office (Destatis).

Excluding large-scale orders, new orders declined by 2.7 per cent month-on-month.

The broader three-month comparison from November 2024 to January 2025 showed a 2.4 per cent decline in new orders compared to the previous three-month period. However, when large-scale orders were excluded, there was a slight increase of 1.0 per cent.

A key factor behind the decline in new orders was the sharp contraction in the ‘manufacture of machinery and equipment’ sector, which saw a 10.7 per cent drop from December 2024 after seasonal and calendar adjustments, as per Destatis.

The intermediate goods sector also reported a 1.4 per cent decline, while capital goods orders fell significantly by 11.0 per cent, and consumer goods orders were down by 2.0 per cent.

German manufacturers saw a steep decline in domestic orders, which plummeted by 13.2 per cent in January. Foreign orders also weakened, falling 2.3 per cent, with demand from the euro area dropping 2.5 per cent and orders from outside the euro area decreasing 2.3 per cent.

Despite the downturn in new orders, real turnover in manufacturing (seasonally and calendar adjusted) recorded a slight increase of 0.4 per cent in January 2025 compared to December 2024. Year-on-year, however, turnover was 0.9 per cent lower than in January 2024. Revised figures for December 2024 showed a 0.5 per cent increase in turnover from November 2024, an improvement from the previously reported -0.1 per cent.

ALCHEMPro News Desk (HU)