German industrial orders rebounded in May, rising 1.9% from the previous month, according to data released Monday by the Federal Statistical Office (Destatis).

The increase followed a decline in April and exceeded market expectations, signaling a potential stabilization in the manufacturing sector after months of weakness.

The surprise uptick in new business provides a counter-narrative to prevailing recession concerns in Europe’s largest economy.

While the broader industrial landscape remains fragile, the May data suggests that demand is not collapsing as sharply as some analysts had feared.

The rebound indicates that domestic and export orders are finding a floor, even if the recovery is tentative.

This development follows other positive signals from the German economy earlier in the week.