Germany’s factory orders surged 7.8% month-on-month in December 2025, defying market expectations for a 2.2% drop and accelerating from November’s marginally revised 5.7% gain. It marked the fourth straight monthly increase and the strongest since December 2023, boosted by large orders in metal products (30.2%) and mechanical engineering (11.5%). Notable growth was also recorded in electrical equipment orders (9.8%) and electronic products (5.7%). In contrast, demand fell for aircraft, ships, trains, and military vehicles (- 18.7%), and the automotive industry (-6.3%). By category, capital goods rose 10.5% and intermediate goods 5.7%, while consumer goods declined 5.3%. Domestic demand climbed 10.7%, and foreign orders advanced 5.6%, led by a 9.7% rise from non-euro area markets, offsetting a 0.6% euro area drop. Excluding large contracts, orders edged up 0.9%. On a quarterly basis, factory orders grew 9.5% in Q4, or 2.5% without large contracts.

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