Germany’s factory orders dropped 3.8% mom in April 2026, reversing a downwardly revised 4.5% increase in the prior month and missing market estimates for a 1.2% decline. The decrease marked the second monthly fall so far this year, reflecting weaker demand in the automotive industry (-5.3%), electrical equipment (-16.3%), and mechanical engineering (-7.4%). Orders declined across all major categories, including consumer goods (-6.7%), intermediate goods (-4.4%), and capital goods (-2.9%). Foreign demand weakened 4.2%, largely due to an 11.1% plunge in orders from the euro area, while orders from non-euro area countries grew 0.8%. Domestic orders also contracted by 2.9%. Excluding large-scale contracts, factory orders fell 3.8%. On a less volatile basis, new orders in the February-April period were 3.1% lower than in the previous three months. However, excluding large orders, new business rose 3.5%, suggesting underlying demand remained somewhat more resilient.

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