Germany’s factory orders rose 0.9% mom in February 2026, rebounding from an 11.1% slump in the prior month but missing market expectations of a 2% increase. The recovery was driven mainly by the automotive sector, where orders grew (3.8%). Strong gains were also seen in textiles (45.2%) and metal production and processing (3.7%). In contrast, orders in other vehicle manufacturing, including aircraft, ships, trains, and military vehicles, plunged 25.9%. By category, demand increased across capital goods (0.2%), intermediate goods (1.4%), and consumer goods (4.5%). Foreign orders rose (4.7%), led by the euro area (6.7%) and non-euro area markets (3.5%). However, domestic orders fell (4.4%). Excluding large-scale contracts, total orders rose (3.5%). On a less volatile basis, new orders from December 2025 to February 2026 were 2.0% higher than in the previous three-month period. However, excluding large orders, they fell 0.8%.