Germany’s factory orders surged 5.0% mom in March 2026, sharply accelerating from an upwardly revised 1.4% growth in the prior month and easily topping market expectations of a 1% increase. The upturn was boosted by a positive trend in new orders across almost all economic sectors, including electrical equipment (21.5%), data processing equipment, electronic and optical products (14.4%), and mechanical engineering (6.9%). Order intake increased for all components, notably intermediate goods (9.2%), consumer goods (7.3%), and capital goods (2.1%). Foreign orders jumped 5.6%, boosted by demand from the euro area (10.1%) and non-euro area markets (2.7%). In addition, domestic orders grew 4.0%. Excluding large-scale contracts, total orders rose 5.1%, reaching their highest level since February 2023. On a less volatile basis, new orders in Q1 2026 fell 4.1% from the prior period, due to a very high volume of large orders at the end of 2025. Excluding large orders, they increased by 1.6%.