In January 2025, the industrial sector faced a stark decline in orders, dropping by 7.0%, a figure that surpassed expectations. When adjusted for volatile major orders, the decrease was a more tempered 2.7%.
Domestic orders plummeted by 13.2%, while foreign orders fell by 2.3%. This downturn is largely attributed to uncertainty surrounding economic policies.
Speculation regarding new tariffs from US President Trump and proposed financial strategies by the Union and SPD has further dampened business confidence. The German industrial landscape, particularly in machinery and vehicle manufacturing, has seen significant contractions, exacerbated by global trade tensions.
China's imports also suffered, declining by 8.4% year-on-year, reflecting broader market fears. The ongoing trade war is influencing global markets, with the S&P 500 index experiencing its lowest point since November, and tech stocks entering a correction phase.
Economic forecasts remain bleak, with projections of a contraction in the first quarter of 2025. While there are glimmers of hope for recovery, a prolonged dry spell is anticipated, extending into the middle of the year.
The combination of fluctuating major orders and persistent policy uncertainty continues to challenge the industrial sector, leaving stakeholders eager for signs of stabilization.
