Germany’s economy contracted 0.1% in the second quarter of 2025, extending a run of weak output that has seen gross domestic product decline in six of the past 11 quarters. The latest downturn was attributed to faltering investment, adding to concerns that Europe’s largest economy remains stuck in recessionary territory. Fresh industry data underscore the slowdown. The VDMA, Germany’s engineering federation, said orders for machinery and industrial equipment fell 5% year-on-year in June, with both domestic and foreign demand dropping by the same margin. For the three months to June, orders slipped 2%, as a 2% slide in domestic bookings and a 1% decline in foreign demand highlighted broad-based weakness. The combination of shrinking output and falling engineering orders suggests that Germany’s industrial core continues to struggle amid sluggish global demand and waning capital expenditure. Economists warn that without a pickup in investment or external orders, the economy faces an uphill battle to regain momentum in the second half of the year.