US EditionGermany's industry makes unexpectedly weak start to 2026
January industrial orders fell 11.1% and production dropped 0.5% amid rising energy costs and geopolitical tensions, risking further setbacks in Germany's export-driven economy.
- Germany's industry began January with orders down 11.1% and production dropping 0.5%, according to Germany's statistics office.
- Empty gas storage and supply constraints mean disruptions linked to Iran have forced German shipping companies to reroute around the Persian Gulf, increasing delays and costs.
- Metal production led the decline with output falling 10.3%, while pharmaceuticals and electronics also decreased, and energy production unexpectedly climbed 10.3%.
- The economy ministry warned that rising energy prices increase inflation risks as companies pass costs to consumers, and higher costs hurt export‑oriented industries and energy‑intensive sectors.
- Analysts say a government task force has been set up to monitor prices and supply security, contingent on no escalation of the war in Iran.
26 Articles
26 Articles
German industry has a significant order deficit at the start of the year.
German industry started off weakly in the year: orders fell by 11.1 percent in January - much stronger than expected. Economists speak of a shock, but also see special effects from large orders.
In December, the order situation for the industrial companies in Germany was still rosy. However, in January, the major orders remained out – to an extent that surprised even experts.
A weak start into the year was expected for the German industry. But now the order deficit is even more drastic than expected, the new business declined as strongly as it has not been for two years.
The German industry has given an unpleasant surprise in January with significant falls in both the quantity of orders and the production, according to data published this Monday by the country’s statistical portal, Destatis. Indeed, the forecasts pointed to positive numbers in the first month of the year, but the reality has broken with the forecasts showing a decrease of 0.5% intermonthly in production and a collapse of 11.1% in orders. Compare…
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