FRANKFURT, June 20 (Xinhua) -- Germany's manufacturing sector showed signs of recovery in April 2025, as industrial order backlogs increased, driven largely by strong demand in the automotive industry, according to data released by the German Federal Statistical Office (Destatis) on Friday.

The total order backlog in the manufacturing sector rose by 0.8 percent compared to March 2025, and by 4.0 percent on a calendar-adjusted basis from April 2024.

Analysts point to robust demand in the auto industry as the main driver of this growth. The backlog of orders in the automobile sector grew by 2.6 percent compared to the previous month, while the rest of the vehicle manufacturing sector posted a modest gain of 0.8 percent.

Experts say these figures offer a glimmer of hope for the crisis-hit industrial sector in Germany, which has lost over 100,000 jobs in the past year with nearly half of them in the automotive industry, according to a report published by the global consultancy firm EY recently.

German Bundesbank President Joachim Nagel expressed cautious optimism on Monday during the Frankfurt Euro Finance Summit, stating that a "slight increase in overall economic output" of Germany could be achievable in 2025.

He noted that the central bank's earlier forecast of economic stagnation did not take into account the stronger-than-expected 0.4 percent GDP growth in the first quarter.

However, Nagel warned that significant risks remain. The unresolved trade tensions with the United States pose a major threat to economic stability. Additionally, the geopolitical situation in the Middle East introduces further uncertainty.

"Should the conflict escalate and persist, oil prices could spike significantly, altering the current economic outlook. Both in terms of growth and inflation," he cautioned. ■