BERLIN, Sept. 5 (Xinhua) -- Germany's industrial orders declined for the third consecutive month in July, highlighting the impact of U.S. tariffs and persistent structural headwinds weighing on Europe's largest economy, official data showed Friday.
Incoming orders fell 2.9 percent month-on-month, according to the Federal Statistical Office. Both domestic and foreign demand recorded sharp drops.
The slump was driven largely by a 38.6 percent plunge in orders for transport equipment including aircraft, ships and trains. By contrast, automotive orders rose 6.5 percent after a 7.6 percent fall in June.
The three straight monthly losses followed a brief recovery in April and the preceding months, when firms had front-loaded purchases ahead of U.S. tariff hikes. Recent figures suggest those effects have faded, with protectionist measures now dragging on demand.
The Federal Ministry for Economic Affairs and Energy said order intake remained highly volatile due to trade and geopolitical uncertainty, adding that demand was subdued even after adjusting for fluctuations and one-off effects.
Germany's leading economic research institutes on Thursday cut their 2025 growth outlook to just 0.1 to 0.2 percent, down from summer projections. They cited U.S. tariff-related trade barriers and persistent uncertainty as the main drags, urging the federal government to pursue expansionary fiscal policies and accelerate reforms. ■