German Output Falls but Factory Orders Climb

In April, German industrial output and exports both fell more than expected, with exports dropping 1.7% and industrial production declining 1.4%, mainly due to weaker demand from the United States amid ongoing tariff concerns. Despite these declines, German factory orders unexpectedly rose by 0.6% against analyst forecasts of a fall. The rise in factory orders was driven by a notable 4.1% increase in capital goods, while orders for intermediate and consumer goods declined. This presents a mixed outlook for the German industrial sector, which faces pressure on current production and export performance but shows resilience in underlying domestic demand and some sectors. The data suggest continued uncertainty for German industry amid global trade tensions.