(de-news.net) – In late spring 2026, Germany saw more robust economic activity, with manufacturing orders and industrial turnover rising in May, primarily due to transportation equipment and machinery. The services sector also reported higher revenue in April, although with differing performance across various industries.

Germany’s manufacturing sector recorded a seasonally and calendar-adjusted 1.9% increase in real new orders in May 2026 compared with April, according to preliminary data released Monday by the Federal Statistical Office (Destatis). When large-scale orders were excluded, incoming business still advanced by 1.0% from the previous month, indicating that growth extended beyond exceptionally large contracts and remained positive on a broader basis.

Looking at the less volatile three-month comparison, total new orders between March and May 2026 were 0.2% lower than during the preceding three-month period. However, excluding major orders, incoming business increased by 4.1% over the same interval, highlighting a stronger underlying trend once the influence of unusually large contracts was removed. Revised data also showed that orders in April declined 3.2% from March, representing a smaller contraction than the preliminary estimate of a 3.8% decrease.

Strong transport and machinery demand

The improvement recorded in May was driven primarily by a sharp expansion in the other transport equipment industry, which includes aircraft, ships, rail vehicles, and military equipment. New orders in this segment climbed 85.0% from the previous month following several large contracts. Additional support for the overall result came from machinery manufacturing, where orders rose 3.7%, and from electrical equipment manufacturing, which posted a 5.7% increase. These gains were partially offset by weaker performance in the automotive industry, where new orders fell 3.8%, as well as in the manufacture of computer, electronic, and optical products, which declined 7.8%.

Across the major categories of industrial goods, capital goods orders increased 2.2% from April, while intermediate goods orders rose 1.4%. Consumer goods also recorded positive momentum, with new orders advancing 2.4% on a monthly basis.

Export demand and turnover climb

Demand from foreign markets strengthened overall, with international orders increasing 2.2% in May. Within that total, orders from euro area countries rose by 11.2%, whereas demand from countries outside the euro area declined 3.2%. Domestic orders also contributed positively to the monthly result, increasing 1.3% compared with April.

Destatis further reported that real manufacturing turnover increased 1.8% in May from the previous month after seasonal and calendar adjustment. Compared with May 2025, calendar-adjusted real turnover was 4.2% higher, reflecting continued year-over-year growth. Revised figures for April confirmed the preliminary estimate, showing that turnover increased 0.1% from March.

Services sector expands, led by professional activities

Germany’s services sector also generated higher revenue during the latest reporting period. According to preliminary figures released by Destatis, and excluding financial and insurance services, seasonally and calendar-adjusted real revenue increased 1.4% in April 2026 compared with March, while nominal revenue rose 1.1%. Relative to April 2025, the sector recorded gains of 0.3% in real terms and 2.6% in nominal terms.

Among the individual service industries, professional, scientific, and technical services recorded the strongest monthly increase in real revenue, rising 3.0%. Administrative and support services—including activities such as equipment leasing and employment placement—followed with a 2.2% increase. The real estate sector also posted positive growth, with revenue increasing 0.9% from the previous month. More moderate gains were recorded in information and communication, where revenue rose 0.6%, and in transportation and storage, which expanded by 0.5%, contributing to the broader increase in services-sector activity.

Consumer climate brightens slightly

According to the German Retail Association’s most recent Consumer Barometer, which surveys households about their financial outlook, saving habits, and purchase intentions, Germany’s consumer climate remains subdued but is showing signs of gradual improvement. The association stated that the subsequent U.S.-Iran agreement to end the war had contributed to a more positive outlook, while the protracted conflict involving Iran had significantly damaged consumer sentiment, weighing on overall confidence.

In light of these developments, the association reiterated its demand for Sunday trading laws to be loosened. It argued that allowing stores to open on Sundays would help preserve the appeal and attractiveness of city centers and maintained that shopping should be regarded as a leisure activity as well as a retail experience. The appeal follows the Federal Government’s announcement of plans to increase the number of hours that bakeries and pastry shops are permitted to open on Sundays.