German industry on growth trajectory
There are increasing signs of an upcoming turnaround in German industry. Large orders are bolstering the economy. Is the upswing on its way?
Wiesbaden (dpa) - There are signs of an upcoming turnaround in German industry - thanks in part to many large orders. Following a boom in orders in December, hopes are now growing that the German economy will recover in the new year.
Not only did industrial firms receive more orders for the fourth consecutive month in December, they also saw surprisingly robust growth. Month-on-month, the number of orders increased by 7.8 percent, reported the Federal Statistical Office in Wiesbaden.
There was also an unexpectedly sharp rise year-on-year, with orders surging by 13 percent in December. The high level of orders received was thanks in part to increases in the production of metal products and to more orders for electronic and optical products.
According to analysts, industry is likely to be the driver of growth once again in 2026. That said, the recovery is not expected to be particularly pronounced: following a marginal 0.2 percent increase last year, the economy is forecast by the Federal Government and leading economists to grow by one percent in 2026. A marked upswing is not anticipated until 2027.
