German industry’s order backlog at record high
German industry is increasingly optimistic that the current phase of economic weakness is coming to an end. Defence contracts provide much-needed boost, but another key sector has also seen growth.
Wiesbaden (dpa, d.de) – German industry’s order backlog has risen to a new record high. It increased in real terms by 1.5 percent month-on-month in July 2026, reports the Federal Statistical Office. It was up 10.9 percent compared to the July 2025 figure.
The range of unfulfilled orders also reached a record high, climbing to nine months - the highest figure since the time series began in 2015. This indicator states how long companies would take to fulfil all orders on hand, assuming turnover remains constant and no new orders are received.
Major boost from transport equipment manufacture
The manufacture of other transport equipment, as the sector is known, is the driving force behind the trend. This includes aircraft, ships, trains and military vehicles. Its order backlog grew by 3.9 percent month-on-month in July. According to the Federal Statistical Office, this is a sector that recently received many new orders and in which production times are comparatively long.
The order backlog registered in the manufacture of machinery and equipment also increased by 0.8 percent. By contrast, the corresponding figure for the automotive industry declined by 1.7 percent. The figures thus paint a mixed picture within industry: the Federal Statistical Office reports that the order backlog would still be significantly below its previous high if the manufacture of other transport equipment were excluded. Unfilled domestic orders rose by 3.0 percent in July, while unfilled foreign orders were up by 0.6 percent.
