German Engineering Orders Decline 5% in December Amid Weak Demand

Overview of German Engineering Orders

BERLIN, Feb 4 (Reuters) - German engineering orders fell 5% in December mainly on weak demand from non-euro zone countries, a weak end to a year of stagnation, engineering firm VDMA said on Wednesday.

While domestic orders were up 7% on the year in December, foreign contracts were down 9%, with those from both inside and outside the euro zone falling 3% and 11%, respectively.

For 2025 as a whole, the industry's orders books were at the same level as the year before, said the VDMA. The group had previously predicted that production would decline 5% in real terms in 2025, citing trade conflicts and global uncertainty.

Domestic vs Foreign Orders

In the October-to-December period, orders were up 3%, with domestic contracts unchanged and foreign orders up 4%, due mainly to a 6% jump from non-euro zone countries, said the VDMA.

Industry Forecast and Economic Outlook

Together, the figures for the fourth quarter and 2025 as a whole are clear signs of "an economic bottoming out" for the sector, said VDMA chief economist Johannes Gernandt.

Thus the VDMA is sticking with its forecast for a 1% increase in production in real terms for this year, he said.

CHANGE

DECEMBER

overall -5% y/y

of which German +7% y/y

foreign -9% y/y

OCT +3% y/y

TO DEC

of which German +0% y/y

foreign +4% y/y

(Reporting by Miranda MurrayEditing by Madeline Chambers)