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German factory orders in June 2026 rose by 3.1% month-on-month, surpassing market expectations of a modest 0.3% increase. The boost came after a decline in May and marked the strongest rise since March, led by processing equipment, electronics, and optics, which grew by 22.7%, followed by mechanical engineering at 12.7%. Automotive sector orders also increased by 3.8%, while orders for aircraft, ships, trains, and military vehicles dropped sharply by 41.7% after a robust rise in May, with domestic demand increasing by 7.8% and external demand rising slightly by 0.2%. Although outside-the-euro-zone orders grew by 10.2%, orders from the euro area declined by 14%.
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