Military spending lifts German industrial orders to record high - Sarmad

(KUNA) – Official German data released on Thursday showed that industrial order volumes in Germany reached a record high in July, driven by increased demand in the vehicle manufacturing sector, including military vehicles.

The German Federal Statistical Office, in a report issued from its headquarters in Wiesbaden, stated that orders in the manufacturing sector rose by 1.5 percent compared to the previous month and by 10.9 percent on an annual basis.

The office explained that the increase was particularly driven by a surge in orders in the vehicle manufacturing sector, which includes aircraft, ships, trains, and military vehicles, noting that the sector received a large number of new orders.

It added that increased government spending on armaments may have contributed to the rise in order volumes, while these data could bolster hopes for the beginning of a recovery in the German industrial sector after a prolonged period of weakness and stagnation.

In other sectors, the machinery industry recorded a slight increase in order volumes, while orders in the automotive sector declined amid growing competition from Chinese electric vehicles.