Germany’s factory orders saw a significant rebound in September 2024, rising by 4.2% month-over-month, far exceeding market expectations of 1.5%. This follows a sharp 5.4% decline in August, the steepest drop since January. The September increase signals a positive shift for the country’s industrial sector, driven by strong demand in several key areas.

Strong Demand for Aerospace and Automotive Orders

The most notable driver of the upturn was a massive 117.1% surge in orders for aircraft, ships, and trains, a clear indication of robust activity in the transportation and aerospace industries. Additionally, orders for the automotive sector increased by 2.9%, further contributing to the overall growth. However, the trend wasn’t universal, as demand fell for basic metals (-10.0%) and machinery and equipment (-3.6%), reflecting some sector-specific challenges.

Growth in Capital and Consumer Goods Orders

Factory orders for capital goods rose by 8.3%, and consumer goods saw a solid 3.8% increase, underscoring healthy demand in these areas. On the other hand, demand for intermediate goods dipped by 2.4%, suggesting a slowdown in production for goods used in other manufacturing processes. These figures highlight a mixed landscape, with certain industries continuing to thrive while others face more headwinds.

Foreign and Domestic Orders Show Mixed Trends

Foreign orders rose by 4.4%, largely driven by a 14.6% jump in orders from the Eurozone. However, orders from outside the Eurozone fell by 1.6%, reflecting weaker global demand. Domestically, orders grew by 3.6%, adding to the positive trend. Excluding large-scale orders, incoming orders were still up 2.2% from August, showing a more stable growth pattern. In the three-month comparison, new orders in Q3 2024 were 4.2% higher than in the previous quarter, signaling continued strength in Germany’s industrial sector.