Order backlog in German industry reaches new all-time high

Berlin. With order books bulging, there is hope in German industry that the long dry spell will end. The order backlog in July increased by 1.5 percent after adjusting for prices compared to the previous month, said the Federal Statistical Office in Wiesbaden. “The order backlog in the manufacturing sector once again reached a new all-time high.”

According to the Federal Office, the range for the order backlog increased to nine months. This is the highest value since data collection began in 2015. The range indicates how many months the companies would have to produce to process their orders with constant sales.

The positive development was particularly supported by the increase in “other vehicle construction”. These include planes, ships, trains and military vehicles. Many new orders have recently been received here and the production time is comparatively long, as the statisticians explained. Government spending on armaments may also have played a role in the increase in other vehicle construction. A slight increase in mechanical engineering also had a positive effect, while the order backlog in the automotive industry fell.

Due to rising exports and billions in government spending, leading institutes have raised their forecasts for the German economy. The Ifo Institute, for example, expects growth of 1.4 percent for 2026. In 2025, the gross domestic product had only increased by 0.2 percent; the economy had shrunk in the two previous years.