German Industrial Sector Shows Broad Strength in May, with Factory Orders and Production Exceeding Forecasts
| Pair | Now | Since publish |
|---|---|---|
| EURUSD | — | — |
- May German factory orders up 1.9% MoM, annual orders surge 6.2%, beating forecasts.
- German industrial production up 0.9% in May, fastest since Sept, beating 0.1% forecast.
- Auto (+3.6%) and construction (+0.9%) drove May German industrial output growth.
- EUR/USD showed no immediate reaction to strong German data, trading near 1.1430.
German factory orders experienced a notable rebound in May, increasing by 1.9% month-on-month, significantly exceeding the 1.1% forecast. This recovery follows a revised 3.2% decline in April. On an annual basis, orders were up 6.2%. While some parts of German industry continued to benefit from the re-channelling of international orders due to Middle East disruptions, other sectors saw the impact of the conflict begin to fade. Foreign orders rose 2.2%, largely driven by an 11.2% increase from the euro area, even as orders from outside the euro area declined 3.2%, with domestic orders advancing 1.3%.
German factory orders registered a stronger-than-expected rebound in May, increasing by **1.9%** month-on-month, surpassing forecasts of **1.1%** to **1.2%**. This followed a revised **3.2%** decline in April, an improvement from the initially reported **3.8%** drop. On an annualized basis, orders surged **6.2%**, significantly higher than the previous **2.1%** (which was revised from **1.6%**). Excluding large-scale orders, new orders rose **1.0%** from the prior month.
Further positive data for May indicates German industrial production also showed strength, increasing by **0.9%** month-on-month. This exceeded forecasts of a **0.1%** rise and marked a second consecutive month of growth, following a **0.2%** increase in April. On an annual basis, industrial production remained unchanged. The May increase was primarily driven by the automotive industry, which saw a **3.6%** month-on-month rise, and the construction sector, up **0.9%** month-on-month. Excluding energy and construction, industrial output rose **0.8%** from April, with capital goods output climbing **1.3%** and consumer goods rising **1.2%**, though intermediate goods output saw a **0.4%** drop.
New details emerged regarding German industrial production in May. The **0.9%** month-on-month increase, which exceeded forecasts, was the fastest growth seen since September. Following the data release, the Euro (EUR) showed **no immediate response**, with EUR/USD trading marginally lower near **1.1430** at the time of reporting.