German Industrial Orders Drop Sharply in November, Surprising Analysts

The 5.4% decline in orders, driven by a lack of large contracts, raises concerns about the sector's recovery prospects for 2025.

Industrial orders in Germany fell by 5.4% in November, significantly exceeding analysts' expectations of a 0.2% decline.
The drop was largely attributed to the absence of large-scale contracts, which caused a 58.4% decline in the 'other vehicle manufacturing' sector.
Excluding large contracts, overall industrial orders would have increased by 0.2% month-over-month.
Domestic orders rose by 3.8% in November, but foreign orders fell 10.8%, with especially weak demand from outside the Eurozone.
Economic experts and government officials warn of stagnation in the industrial sector, with no signs of a sustained recovery heading into 2025.