German manufacturing sees orders stagnate in February as tariffs loom

The Federal Statistical Office said orders were unchanged compared to the previous month, with an expected 3.4% rise failing to materialize.

Germany's export-based economy is set to be hit hard by 20% levies on EU goods announced by US President Donald Trump on Wednesday, but the figures suggest a slowdown in output even before the tariffs take full effect on Wednesday.

Orders in the German manufacturing sector failed to pick up in February after dropping by a revised figure of 5.5% in January.

The country's key automotive sector saw a slight rise in orders, with manufacturing in machinery and transport also recording an uptick.

However, manufacturing of metals and electrical equipment as well as the pharmaceutical industry reported falling orders compared to the previous month.

According to preliminary figures, turnover in German manufacturing in February was up 0.2% on the previous month, but fell 2.9% compared to February 2025.