Germany’s factory orders jumped 7.3% in December 2025, marking the largest monthly increase in a year and signaling a potential turnaround in industrial demand. The rebound follows a contraction in the prior three months and reflects stronger domestic and foreign demand.
- Factory orders rose 7.3% in December 2025, the strongest monthly increase in 12 months
- Domestic orders increased by 4.1%, while foreign orders surged 9.2%
- Machinery, electrical equipment, and transport equipment drove over half the growth
- The rise follows three consecutive months of decline in factory orders
- Industrial output rebounded after a contraction linked to monetary tightening and supply chain shifts
- Markets reacted positively, with German stocks and the euro gaining on the news
German industrial output showed a strong revival in December 2025, with factory orders rising by 7.3% month-on-month, the steepest gain since January 2024. The surge came after three consecutive months of decline, with orders from domestic sources increasing by 4.1% and foreign demand contributing a 9.2% rise, driven by heightened orders from Europe and Asia. The data, released by Germany’s Federal Statistical Office, suggests that manufacturing activity may be stabilizing after a period of weakness linked to global supply chain adjustments and tighter monetary policy. The jump in orders for machinery, electrical equipment, and transport equipment accounted for over half of the total increase, indicating renewed confidence among industrial buyers. The December figures contrast with a 1.8% drop in November and a 2.4% decline in October, underscoring the volatility in Germany’s industrial sector. However, the rebound coincides with improving business sentiment and a slight easing in input costs, which may support further growth in early 2026. Market participants interpreted the data as a positive signal for the broader eurozone economy. German equities, particularly in the industrials and capital goods sectors, rose in early trading, while the euro gained against the dollar. Investors are now closely monitoring upcoming PMI surveys and inflation data for confirmation of sustained recovery momentum.