Press Release Development Tender

According to the Federal Statistical Office[1] incoming orders in the manufacturing sector rose noticeably in March 2026: after price calendar and season adjustments the increase in order volume compared to the previous month was 5.0 percent. In February they had already increased by - now revised upwards - 1.4 percent. Compared to the previous year the increase adjusted for working days was once again strong at 6.3 percent. Due to the slump at the beginning of the year there was a decline of 4.1 percent for the first quarter.

In March demand from abroad (+5.6 percent) increased slightly more than domestic orders (+4.0 percent). The most significant increase in orders came from the euro area (+10.1 percent). But third countries also generated noticeable new business (+2.7 percent).

In recent months extensive major orders in connection with public investment and procurement projects have caused high volatility in domestic orders. In the end this effect played a rather minor role. Excluding major orders domestic new orders rose by a significant 6.5 percent in March compared to February. When it comes to overall order intake however the growth adjusted for large orders is only slightly higher at +5.1 percent.

Among the product groups intermediate goods recorded the strongest order growth (+9.2 percent). Orders for consumer goods (+7.3 percent) and capital goods (+2.1 percent) also increased significantly. Compared to the previous year consumer goods increased the most (+12.5 percent) while capital goods (+5.9 percent) and intermediate goods were closer together (+5.8 percent).

Almost all industrial sectors recorded increases in orders. These included important areas such as automobiles and automobile parts (+2.9 percent) mechanical engineering (+6.9 percent) metal production (+3.4 percent) and the manufacture of metal products (+3.7 percent). There was also an increase in orders from producers of electrical equipment (+21.5 percent) IT and optical devices (+14.4 percent) and pharmaceutical products (+9.4 percent). Other vehicle construction which also includes military vehicles also registered a further increase in order numbers (+7.4 percent). The textile industry had to accept a decline in demand: significant growth in February was followed by a slump of 26.4 percent.

New orders in the manufacturing sector have been trending upward since August 2025. However there are sometimes significant monthly fluctuations around this trend due to large orders. However pull-forward effects are likely to be responsible for the current swing. The Iran war has led to an energy price shock which will also have a delayed impact on the prices of other (input) goods. Against this background orders were likely to have increased in March in anticipation of rising prices or possible delivery bottlenecks. Current surveys already indicate increased delivery bottlenecks in individual areas of the industry. Current sentiment indicators have also deteriorated again recently which suggests a weakening of the industrial economy.

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[1] Press release from the Federal Statistical Office from May 7 2026.