German factory orders experienced a significant surge in December 2024, jumping 6.9% month-over-month.
German factory orders surge
This rebound follows a revised 5.2% decline in November and significantly surpasses market forecasts of a 2.0% increase. This marks the first growth in three months and the strongest since September, driven by a 55.5% surge in large-scale orders (aircraft, ships, and trains) and an 8.6% increase in machinery and equipment orders. The automotive sector, however, saw a 3.2% decline in demand. New orders increased across most other categories, including capital goods (10.9%), consumer goods (7.7%), and intermediate goods (0.2%). Domestic orders soared by 14.6%, while foreign orders increased by a more modest 1.4%, with Eurozone demand up 6.2% but orders from the rest of the world down 1.5%.
Modest order growth in Germany, but yearly drop
Excluding large orders, incoming orders rose 2.2% from November. In the fourth quarter, new orders were unchanged compared to the previous quarter. For the full year, factory orders contracted by 3.0% after adjusting for calendar effects.
