German industrial orders stagnated in February despite hopes of a rebound, data showed today, highlighting weakness in Europe's biggest economy even before US President Donald Trump unleashed his tariff blitz.
New orders, closely watched as an indicator of future business activity in Germany, registered zero growth month-on-month, according to preliminary data from federal statistics agency Destatis.
Analysts surveyed by financial data firm FactSet had forecast a rise of 3%. It was the latest disappointing reading for orders after they registered a 5.5% fall in January.
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.
In February, there were heavy declines in orders in the manufacture of some metal products, electrical equipment and the pharmaceutical sector, according to Destatis.
However, new orders increased slightly in the crucial automotive sector and more strongly for transport equipment, the data showed.
The manufacturing slump has hammered Germany's economy, which contracted both last year and in 2023, with problems exacerbated by deep-rooted issues like an ageing population.
About 68,000 jobs were cut in Germany's manufacturing sector last year, with workers losing jobs across almost all major industries, according to Destatis.
A modest economic recovery was expected to get underway this year, and optimism has been boosted by the German government's plans to massively ramp up infrastructure and defence spending.
But Trump's sweeping "Liberation Day" tariffs are clouding the outlook. Germany is bracing for a heavy blow, as the US is a top destination for exports of its cars and other goods.
The tariffs "threaten our export-oriented companies and endanger prosperity, stability, jobs, innovation and investments worldwide," said industry federation BDI following Trump's announcement.
