Germany's manufacturing sector showed moderate resilience in April 2025, with real new orders rising by 0.6 percent compared to March and registering a notable 4.9 percent year-over-year increase. This growth was primarily driven by a 21.5 percent surge in the computer, electronic, and optical products sector due to several large-scale orders. Despite this, momentum slowed from March's revised 3.4 percent monthly growth. Excluding large-scale orders, the increase was a more modest 0.3 percent, suggesting underlying demand was steady but not broad-based.

Sectoral performance was mixed. Gains in transport equipment (7.1 percent) and fabricated metals (4.4 percent) were offset by sharp declines in electrical equipment (minus 9.2 percent, machinery (minus 4.2 percent), and pharmaceuticals (minus 14.1 percent), the latter correcting after a sharp prior-month rise. Capital goods orders rose 4.1 percent, indicating investment intentions remained firm, while consumer and intermediate goods fell 5.9 percent and 3.4 percent, respectively.

Domestic demand was a bright spot, rising 2.2 percent, in contrast to a 0.3 percent dip in foreign orders, with weakness outside the euro area (minus 0.9 percent). However, turnover fell by 1.5 percent from March, pointing to ongoing production-side fragility. This latest update leaves the German RPI at minus 11 and the RPI-P at minus 8, meaning that economic activities in Germany remain slightly behind expectations.

Orders are seen retracing by 1.8 percent percent on the month after a big 3.6 percent increase on the month in March.

Manufacturers orders are a leading indicator for industrial production. The figures are calculated every month by the Federal Statistical Office and represent the value of all orders for the delivery of self-made products confirmed by industrial enterprises with 50 or more employees in the respective reporting period. The results are broken down by both sector and region of origin (domestic and foreign split into euro area and non-euro area). Monthly volatility can be very high so moving averages give a much better guide to underlying trends.

Manufacturers orders data are keenly awaited by analysts each month. The data present a detailed breakdown by various sectors and a reading of the pulse of a major sector of the economy. Like the PPI, manufacturing orders data exclude construction, which is the preferred Eurostat measure.

The manufacturers orders data rank among the most important early indicators for monitoring and analyzing German economic wellbeing. Because these data are available for both foreign and domestic orders they are a good indication of the relative strength of the domestic and export economies. The results are compiled each month in the form of value indexes to measure the nominal development of demand and in the form of volume indexes to illustrate the price-adjusted development of demand. Unlike in the U.S., orders data are not collected for all manufacturing classifications - but only those parts in which the make-to-order production plays a prominent role. Not included are, for example, mining, quarrying and the food industry.