German factory orders increase more than expected in April
FRANKFURT
German industrial orders rose faster than expected in March, official data showed yesterday, partly driven by companies rushing to stock up on goods ahead of sweeping U.S. tariffs.
It represented rare positive news for Europe's struggling top economy, but observers warned it was too early to conclude a sustainable recovery was underway as U.S. levies could weigh later in the year.
New orders, closely watched as an indicator of future business activity in Germany, jumped 3.6 percent month-on-month, according to preliminary data from federal statistics agency Destatis.
The Economy Ministry said in a statement the March increase "may be partly due to anticipatory effects in response to the announced U.S. tariff increases."
But it also noted increased demand for "Made in Germany" goods from other European countries, suggesting a "revival in investment activity."
Nevertheless, a "renewed weakening of the industrial economy over the further course of the year cannot be ruled out" amid U.S. President Donald Trump's tariff blitz, the ministry warned.
The United States was Germany's top trading partner in 2024, receiving huge quantities of its cars, chemicals and pharmaceuticals.
March's jump in industrial orders was driven by increases in key areas like the auto sector, mechanical engineering and electrical equipment, according to Destatis.
Overseas orders rose by 4.7 percent and domestic orders were up two percent, it said.
Weak global demand, fierce competition from China and high energy prices have battered Germany's industrial sector, which accounts for about one fifth of its economic output.
