German factory orders see a broader pick up again in May

Industrial orders +1.9% vs +1.5% m/m expected Prior -3.8%; revised to -3.2% It's a modest rebound in German manufacturing orders, after the more disappointing April figures which owed to the effect of dissipating stockpiling and advanced ordering in the first month of the US-Iran conflict. Even if excluding large orders, new orders were seen up by 1.0% on the month. But in the less volatile three-month comparison, new orders from March to May 2026 were 0.2% lower than in the previous three months. If excluding large orders, they rose by 4.1% over the same period. The positive development of new orders in May owes much to a surge in other vehicle construction (aircraft, ships, trains, military vehicles). New orders in this sector were some 85% higher than in the previous month, driven by several large contracts. The broader overview shows orders for capital goods being up 2.2% in May, intermediate goods 1.4% higher, and consumer goods rose by 2.4% on the month.