Decline in Orders for German Industries Observed Once More in June - Industrial orderscontinued to decline in June, according to German data.
German Industrial Orders Decline in June 2025
The German industrial sector experienced a decline in orders in June 2025, particularly in the vehicle manufacturing and metal products sectors. The Federal Statistical Office revised its preliminary figures for May, showing a decrease in orders of only 0.8 percent, originally reported as a 1.4 percent decrease [1][3].
The "other vehicles" category, which includes aircraft, ships, trains, and military vehicles, saw the biggest drop of 23.1 percent in June, while the automotive industry orders fell by 7.6 percent and fabricated metal products by 12.9 percent [1][4].
Key reasons for this decline include weaker foreign demand, especially from non-Eurozone countries, with orders from outside Europe dropping 7.8 percent [1][2][4]. This decrease is largely due to ongoing uncertainty from US tariff policies affecting steel, aluminum, and automobiles imported from the EU.
Volatile large-scale orders and persistent international trade policy uncertainty and geopolitical issues have also contributed to the overall decline in order intake [1][4]. The automotive and metal products sectors have endured months of falling orders linked to these tariff hikes and global trade tensions [2].
In contrast, orders for the electrical equipment sector increased by 23.5 percent, and domestic demand showed some resilience [1][4]. However, this was not enough to offset losses in key manufacturing segments.
The Ministry of Economics expects the industry's economic situation to be shaped by a dampened foreign demand due to likely permanent higher tariffs on exports to the USA [4]. Export expectations of companies have somewhat improved in July, according to the Federal Ministry of Economics [5].
The Federal Ministry of Economics is led by CDU politician Katherina Reiche and is based in Wiesbaden [2].
References:
[1] Federal Statistical Office (2025). Industrial production and new orders in Germany. Retrieved from www.destatis.de
[2] Federal Ministry of Economics (2025). Press release on industrial orders in June 2025. Retrieved from www.bmwi.de
[3] Federal Statistical Office (2025). Revised figures for industrial orders in May 2025. Retrieved from www.destatis.de
[4] Federal Ministry of Economics (2025). Statement on the industrial order situation in June 2025. Retrieved from www.bmwi.de
[5] Federal Ministry of Economics (2025). Export expectations for July 2025. Retrieved from www.bmwi.de
The declining orders in Germany's industrial sector in June 2025, notably in the vehicle manufacturing and metal products industries, could potentially be mitigated by the revision of community policy and employment policy within the industry, taking into account the ongoing uncertainty from US tariff policies and global trade tensions. A robust finance sector may also play a crucial role in addressing the funding needs of businesses during this time of economic fluctuation.
