Manufacturing in Germany reported an order increase of 3.1 percent in June 2026 compared to the previous month. According to the Federal Statistical Office, this represents a plus of 1.3 percent for the second quarter, with demand in the year-on-year comparison up 6.5 percent on a working-day adjusted basis. The figures are adjusted for price, calendar, and seasonal factors. The recent increase was mainly driven by a significant rise in domestic orders of 7.8 percent, while foreign demand nearly stagnated (+0.2 percent). However, a closer look reveals that the order situation remains volatile: the growth is mainly attributable to large orders – without their inclusion, order books recorded a decline of 0.5 percent.

Metal products and mechanical engineering with significant gains

Among the economic sectors relevant to the building materials industry, mechanical engineering stands out with an order increase of 12.7 percent, supported especially by large orders from domestic customers. Structural steel and reinforced steel producing companies in the metal products sector registered a plus of 2.4 percent. Automotive and automotive parts also recorded increases of 3.8 percent. This development indicates sustained demand for metallic materials for construction and infrastructure projects.

The Federal Ministry for Economic Affairs attributes the strong gains among capital goods producers – a total of +6.4 percent after a weak start to the year – in particular to public procurement as part of the modernization of the Bundeswehr as well as orders under the Special Fund for Infrastructure and Climate Neutrality. These public investments are likely to support mid-term demand for construction materials such as concrete, reinforced concrete, and green steel.

Intermediate goods and chemicals under pressure

While the capital goods industry is growing, producers of intermediate goods had to accept another decline of 2.5 percent. Chemical goods (-3.2 percent) and pharmaceutical goods (-5.3 percent) showed particularly strong declines. This development is significant for the building materials industry since chemical raw materials are needed for construction chemistry products such as concrete additives, mortar additives, and sealing systems. A sustained decline in this segment could impact the availability and pricing of construction chemistry products.

Consumer goods producers, by contrast, confirmed their sustained upward trend with a plus of 4.2 percent. This also includes manufacturers of tiles, roof tiles, and other ceramic building products, which are primarily active in end-consumer markets.

Foreign orders highly volatile

Orders from abroad show remarkable resilience despite geopolitical conflicts, according to the Federal Ministry for Economic Affairs, but are subject to strong fluctuations. While orders from the eurozone increased by 7.9 percent in May, a decline of minus 14 percent was recorded in June. In contrast, orders from outside the eurozone rose by 10.2 percent in June, following a decline of minus 5.3 percent in May. This volatility complicates planning certainty for export-oriented building materials manufacturers such as Heidelberg Materials, Wienerberger, and Saint-Gobain, which direct a significant portion of their production to exports.

Significance for the building materials industry

The current order figures send mixed signals to the building materials industry. On the one hand, strong domestic demand and gains in metal products suggest stable demand for construction materials. Public investments in infrastructure and climate neutrality create orders for concrete precast elements, steel structures, and insulation materials as part of energy retrofitting. On the other hand, weakness in intermediate goods and strong fluctuations in export business dampen medium-term planning certainty.

Particularly relevant for the building materials industry is the connection between the capital goods boom and the Special Fund for Infrastructure and Climate Neutrality. Projects for CO₂ reduction in concrete construction, the expansion of renewable energy, and the modernization of transport infrastructure require significant quantities of cement, mineral wool insulation, and metallic materials. Manufacturers specializing in low-CO₂ and circular products are likely to benefit disproportionately from this trend.

Outlook: Volatility remains determining

The dependence on large-order business – without large orders, the order volume in June would have been declining – reveals the fragility of the recovery. For the building materials industry, this means that positive developments do not extend evenly across all segments. While public clients and infrastructure projects provide stimulus, private building volume remains restrained. Strong fluctuations in export business also require flexible production and storage strategies.

The follow-up data expected for August will show whether the positive trend continues or whether the June increase was merely a one-off fluctuation. What will be decisive is whether public investment programs actually result in concrete construction orders and whether foreign demand can be stabilized. For building materials manufacturers, focusing on sustainable, low-CO₂ products and tapping into public procurement markets remains strategically central.