German factory orders rise 2.5% in July

German factory orders rose in July for a third month in a row, adding to signs of recovery in the industrial sector of Europe’s biggest economy.

Industrial orders, an indicator of future business activity, increased 2.5% from the previous month, the statistics office Destatis said Friday. Destatis also revised June’s increase to 3.7%, up from an initial reading of 3.1%.

A FactSet poll of analysts had expected a 0.5% rise in July.

LBBW bank analyst Jens-Oliver Niklasch said the figures suggested Germany’s economic trough had, for now, been overcome.

The data follows other improved indicators. German investor morale rose in August, business sentiment increased for a third straight month in July, and several economic institutes this week raised their 2026 growth forecasts to between 1.3% and 1.4%.