Finance
German industrial orders post biggest increase in two years
Published by Global Banking & Finance Review®
Posted on February 5, 2026
2 min readLast updated: February 5, 2026
Quick Summary
In December, German industrial orders rose by 7.8%, defying analysts' expectations of a 2.2% decline, as reported by the federal statistics office.
German industrial orders post biggest increase in two years
Analysis of German Industrial Orders
By Maria Martinez
Impact of Large-Scale Orders
Feb 5 (Reuters) - German industrial orders rose unexpectedly in December, posting their biggest increase in two years driven by volatile large-scale orders, but more reliable sub-indicators showed an underlying upswing could be in the making.
Domestic vs. Foreign Orders
Orders climbed 7.8% in December, when compared with the previous month, on a seasonally and calendar-adjusted basis, official data showed on Thursday. This was the biggest increase since December of 2023.
Economic Outlook and Expert Opinions
A Reuters poll of analysts had pointed to a fall of 2.2%.
Excluding large-scale contracts, which often follow unpredictable patterns, new orders were 0.9% higher in December compared with the previous month.
INDUSTRY HAS BOTTOMED OUT
It was the fourth consecutive increase in the figure excluding large orders, said Ralph Solveen, senior economist at Commerzbank.
"This gives hope that the downturn in industry has come to an end for the time being," Solveen said.
After revision of the provisional data, new orders in November increased by 5.7% on October, instead of 5.6%.
The less volatile three-month on three-month comparison showed that new orders were 9.5% higher in the fourth quarter of 2025 than in the third quarter.
"Overall, these are strong data, which will add fuel to the narrative that the German economy is finally kicking into gear after a year-long hiatus, helped in part by fiscal stimulus," said Claus Vistesen, chief euro zone economist at Pantheon Macroeconomics.
The jump in orders was driven by a 30.2% increase in orders for fabricated metal products and a 11.5% rise in orders of machinery and equipment.
Foreign orders were up 5.6% in December on the month, with orders from the euro zone decreasing by 0.6% and orders from outside the euro zone rising by 9.7%.
Domestic orders were up 10.7% on the month.
(Additional reporting by Tristan VeyetEditing by Ludwig Burger, William Maclean)
Key Takeaways
- •German industrial orders increased by 7.8% in December.
- •The rise was seasonally and calendar-adjusted.
- •Analysts expected a 2.2% decline.
- •Data was released by the federal statistics office.
- •Further economic data is available on the statistics office's website.
Frequently Asked Questions about German industrial orders post biggest increase in two years
1What are industrial orders?
Industrial orders refer to the requests for goods and services from manufacturers, indicating demand in the industrial sector. A rise in industrial orders suggests economic growth and increased production activity.
2What is GDP?
Gross Domestic Product (GDP) is the total monetary value of all goods and services produced within a country's borders in a specific time period, serving as a broad measure of overall economic activity.
3What is economic data?
Economic data encompasses various statistics that provide insight into the economic performance of a country, including GDP, unemployment rates, inflation rates, and industrial production figures.
