Published by Global Banking & Finance Review®
Posted on September 3, 2025
2 min readLast updated: January 22, 2026
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German engineering orders increased by 4% in July, driven by strong demand from non-euro zone countries, despite stagnant domestic demand.
BERLIN (Reuters) -German engineering orders rose 4% in July from a year ago, with strong demand from non-euro zone countries offsetting stagnant domestic demand, but overall momentum remains subdued this year, engineering association VDMA said on Wednesday.
Domestic orders and those from euro zone countries were flat in July while foreign orders rose 7%, driven by a 10% jump in contracts from outside the currency bloc due to demand for large plants and a weak comparative month last year, the VDMA said.
In the May-to-July period, orders were up 2%, with domestic contracts dipping by 1% and foreign orders up 3% due mainly to a 14% jump from euro zone countries, said the VDMA.
"Overall, momentum remains subdued this year with orders up 2% after seven months," VDMA chief economist Johannes Gernandt said.
"Uncertainty caused by U.S. President Donald Trump's aggressive tariff policy plays a role but a reform bottleneck in Germany and Europe is also paralysing investment," he said, adding relief that had been promised must come in the coming months.
CHANGE
JULY
overall +4% y/y
of which German 0% y/y
foreign +7% y/y
MAY +2% y/y
TO JULY
of which German -1% y/y
foreign +3% y/y
(Reporting by Madeline Chambers, Editing by Rachel More)
An engineering order refers to a request or contract for the design and construction of engineering projects, typically involving machinery or infrastructure.
Domestic demand refers to the total demand for goods and services within a country's economy, excluding foreign consumption.
Foreign demand refers to the demand for a country's goods and services from international markets, impacting export levels.
Economic growth is the increase in the production of goods and services in an economy over a specific period, often measured by GDP.
Stagnant demand occurs when there is little to no growth in the demand for goods and services, often leading to economic challenges.
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