Orders received by Germany's manufacturing industry rose by 1.9% in May compared to April, a month in which a decrease of 3.2% had been recorded, according to provisional data released by the Federal Statistical Office (Destatis).
If orders of very high value are excluded, new orders from German factories were 1% higher than in the previous month.
Compared to May of the previous year, orders in German industry experienced an increase of 6.2%, thus accelerating growth compared to the 2.1% observed in April.
In quarterly terms, a reference less subject to fluctuations, new orders between March and May 2026 were 0.2% below the previous quarter; excluding large orders, orders increased by 4.1% in the same period.
The good performance of new manufacturing orders in May was mainly explained by the strong pull of the manufacturing segment of other transport equipment (aircraft, ships, trains, military vehicles), where orders soared by 85% compared to the previous month thanks to several large contracts.
The increase in orders in machinery and equipment manufacturing (+3.7%) and in the production of electrical equipment (+5.7%) also contributed positively. In contrast, the declines recorded in the automotive industry (-3.8%) and in the manufacturing of computer, electronic, and optical products (-7.8%) weighed down the overall result.
By type of goods, orders for capital goods grew by 2.2% month-on-month in May, while those for intermediate goods advanced by 1.4%. In turn, new orders for consumer goods increased by 2.4%.
In the fifth month of the year, orders from abroad rose by 2.2%, with an increase of 11.2% from the euro area and a decrease of 3.2% from countries outside the monetary union. Domestic orders, for their part, advanced by 1.3%.
This suggests that some sectors of German industry are still benefiting from the reorientation of international orders due to the war in the Middle East, commented Carsten Brzeski, Head of Macroeconomics at ING Research.
"Although it may seem counterintuitive, the conflict has boosted some sectors of the German manufacturing industry," the expert highlighted, referring to the initial support from stock piling and, more recently, the advantage for some companies that their Asian competitors are more exposed to disruptions linked to the Strait of Hormuz.
"Despite initial fears that the conflict in the Middle East would cause further supply chain disruptions, the German industry appears to have emerged little more than unscathed," he added.