BERLIN, Dec. 5 (Xinhua) -- Germany's industrial orders rose by 1.5 percent in October from the previous months, driven by defense-related demand, data from the Federal Statistical Office (Destatis) showed Friday. But officials and industry groups warned that Europe's largest economy continues to face a deepening industrial slump.
A large-scale order in the manufacture of aircraft, ships, trains and military vehicles pushed new orders in the sector up by 87.1 percent, leading to a 9.9-percent surge in domestic orders, Destatis reported.
By contrast, foreign demand remained weak, with overseas orders down 4 percent on the month. Orders from non-eurozone countries fell particularly sharply, dropping 6.5 percent.
"Industrial orders from abroad remain subdued amid trade and geopolitical uncertainties," the Federal Ministry for Economic Affairs and Energy said in response to the figures, adding that the weakness is likely to continue weighing on export momentum.
Germany's major industry association, the Federation of German Industries (BDI), cautioned this week that the country's industrial base is stuck in a structural downturn. It now expects industrial output to contract by 2 percent this year, a sharp downgrade from its earlier forecast of a 0.5-percent decline and marking a fourth consecutive year of shrinking production.
"German industry is heading into a dramatic low point at the end of 2025," BDI president Peter Leibinger said. He warned that Germany as a business location is experiencing its "deepest crisis since the founding of the Federal Republic," describing the situation as being in "free fall."
Leibinger criticized the federal government for reacting too hesitantly and called for a fundamental shift in economic policy to restore competitiveness and growth. ■
