FILE PHOTO: An employee of German engineering company WIWA, specialising in painting and coating technology, works at their plant in Lahnau, Germany, April 4, 2025. REUTERS/Maximilian Schwarz/File Photo

BERLIN, Dec 2 (Reuters) - German engineering orders increased slightly in October, with non-eurozone countries contributing to the rise, but the bump does not signal that a recovery is on the way, said the VDMA engineering association on Tuesday.

Overall orders rose by 4% year on year in October, the first increase since July.

Foreign orders were up 6%, driven primarily by a 9% jump in contracts from outside the euro zone, while domestic orders and those coming from within the currency bloc stagnated.

"The slight increase in orders in October is encouraging, but unfortunately only a consolidation at a low level as last October was one of the weakest months of 2024," said VDMA chief economist Johannes Gernandt.

"The mechanical engineering industry continues to stagnate," he said, pointing out that orders for the first 10 months of 2025 were down 1% year on year.

The less-volatile three-month period from August to October also fell overall by 6%, with foreign orders down by 8% and domestic ones decreasing by 3%.

"The necessary signals of a new beginning in global trade are lacking, as are the promised economic reforms that would truly ease the burden on businesses," Gernandt said.

CHANGE

OCTOBER

overall +4% y/y

of which German +0% y/y

foreign +6% y/y

AUG -6% y/y

TO OCT

of which German -3% y/y

foreign -8% y/y

(Reporting by Miranda MurrayEditing by Madeline Chambers)