Germany’s factory orders slumped 11.1% mom in January 2026, far worse than market expectations for a 4.3% drop, and after a downwardly revised 6.5% rise in the previous month. It was the first decline since August, largely driven by a 39.4% plunge in fabricated metal products after large orders in the prior month created a high base. Demand also weakened for machinery and equipment (-13.5%) and basic metals (-15.1%). In contrast, orders grew for the automotive industry (10.4%) and aircraft, ships, trains, and military vehicles (9.2%). By category, capital goods tumbled 14.1% and intermediate goods fell 7.9%, while consumer goods edged up 0.1%. Domestic demand dropped 16.2%, while foreign orders shrank 7.1%, including a 7.3% fall from the euro area and a 7.1% drop from non-euro area markets. Excluding large contracts, orders slipped 0.4%. Still, factory orders between November 2025 and January 2026 grew 7.4% from the prior three months, or 1.5% higher without large orders.