German manufacturing order books hit record high in July

Orders for German manufacturing businesses reached "a new all-time high" in July, official figures showed on Thursday, providing another sign of improvement in Europe's largest economy.

Stock of orders in manufacturing rose by a price-adjusted 1.5% in July compared to the previous month, the federal statistical office said, citing provisional figures.

Compared to the same month last year, orders were up by 10.9%, in line with the growth trend seen in recent months.

The development was driven particularly by new orders for aircraft, ships, trains and military vehicles, "a sector which recently received many new orders and in which production times are comparatively long," the statistical office said.

New orders were also up in the machinery sector, while the stock of orders in the automotive industry was down by 1.7%.

Leading economic think tanks have recently their forecasts for the German economy due to rising exports and billions in government spending.

The Munich-based ifo Institute now expects economic growth of 1.4% in 2026, after gross domestic product had risen by just 0.2% in 2025, following two consecutive years of recession.