May data shows a rebound in manufacturing demand, driven by vehicle construction and capital goods orders, offsetting April’s decline.
German factory orders increased 1.9% month-over-month in May, surpassing the 1.5% consensus forecast. The rise follows a revised 3.2% drop in April, which had been weighed down by fading stockpiling effects and geopolitical tensions earlier in the year.
Excluding large orders, new orders still climbed 1.0% on the month. Over a three-month comparison, orders fell 0.2% but rose 4.1% when excluding large contracts. The uptick was led by a 85% surge in other vehicle construction, including aircraft, ships, and military vehicles.
Capital goods orders rose 2.2%, intermediate goods gained 1.4%, and consumer goods increased 2.4%. The data suggests a modest recovery in industrial demand after a weak start to the year.