publication
2025-10-07 10:46
The hopes for revival in German industry did not come true again. In August, our western neighbors noted a surprising decline in industrial orders, still stuck in the crisis's oxen.
In August, the value of orders in the German industry was 0.8% smaller than in July – Destatis said on Tuesday. This is a considerable disappointment because economists assumed an increase in the value of orders by 1.1% MDM. It was the fourth month of the decline in orders in the German industry, which in July decreased by 2.7%MDM, in June by 0.2%, and in May by 0.8%.
Particularly strong decreases were recorded in the electronic (-11.5% MDM) and pharmaceutical (-13.5%) industries. The fourth in a row of orders in the automotive sector was significant, which decreased by 6.4% MDM. The demand reported by recipients from abroad (-4.1%) decreased, but the national order increased (by 4.7%).
Despite this, a modest increase was developed in annual terms, where the value of industrial orders was 1.5% higher than in August 2024. However, this is not a revival that most economists expected at the beginning of the year. This is one of the largest macroeconomic disappointments of 2025.
🇩🇪 Meatball. After terrible August, new orders in the German industry are where they were a year ago, i.e. at the bottom. The lack of noticeable revival in the German (and European) industry is probably the biggest disappointment of 2025, also (or maybe especially) from the Polish perspective … pic.twitter.com/u94ffwe0oz
– Analyzes Pekao (@Pekao_analizy) October 7, 2025
Today's data are part of a wider picture of the recession that has been troubled by our western neighbors for over 5 years. In principle, from 2018 Roiku, the German economy is no longer developing, intertwining the periods of recession and stagnation. As Otmar Issing put it, the former economist of the European Central Bank: the economy with a long -term increase of 0.5% is not able to maintain your guardianship.
But 0.5 percent For now, this is the dream of the German government. The International Monetary Fund (IMF) forecasts that the German economy in 2025 will increase by about 0.1 percent. The Bundesbank predicts an increase at about 0.1-0.2 percent Which can be considered a success anyway, because in the last two years the German economy has been shrinking.
As you can see, the German crisis is still ongoing, although economic economists have been predicting the arrival of economic recovery for over a year. To find out that it does not come, it is enough to view the headlines from the last weeks:
Porsche falls from the first league of the German stock exchange. “Symbol of the crisis in the car industry” the famous sports car manufacturer will leave the most important German stock index. “The fall of Porsche is a symbol of the crisis in the German car industry,” comments “Tagesschau”.
German companies are worried about the future. An unexpected decrease in moods. IFO index measuring moods among approx. 7,000 enterprises and considered a reliable forecasting of the future economic situation, fell to 87.7 points in September. with 88.9 points recorded in August.
“Germany fell out of the top ten most innovative countries in the world.” China appeared in their place for the first time in the history of this ranking – Reuters said, based on the ranking of the most innovative countries by the World UN (WIPO) intellectual property.
German companies have been trying to restructure themselves and have been slowing down employees for several months. In recent months, thousands of employees have lost employment in motorization, chemistry, transport and technology sector. The German industry has been struggling with the largest wave of exemptions since the financial crisis from several years ago.
