German mechanical and plant engineering sector: Dissapointing incoming orders

In June 2024, incoming orders in the German mechanical and plant engineering sector remained significantly below the previous year's figure, reports the German industry organisation VDMA. Orders fell by 9 per cent in real terms. Domestic orders were down 8 per cent, while orders from abroad fell by 10 per cent. Orders from euro countries fell even more sharply, dropping by 12 per cent. There were 8 per cent fewer orders from non-euro countries.

"The order situation is disappointing overall. This means that the balance for the first half of the year is clearly negative. A turnaround is not yet in sight, and what's more, the economic stabilisation that was still emerging at the beginning of the year has recently suffered a setback," says VDMA Chief Economist Dr Ralph Wiechers.

"To ensure that the first signs of a foreign-driven cyclical recovery are not thwarted, especially in Germany, a consistent supply-oriented policy for more investment and innovation is needed."

The bottom line for the first half of 2024 was a year-on-year decline in incoming orders of 12 per cent in real terms. From January to June inclusive, domestic orders fell by 18 per cent, while orders from abroad were down 9 per cent (euro countries: minus 14 per cent, non-euro countries: minus 7 per cent). "To ensure that the first signs of a foreign-driven cyclical recovery are not thwarted, particularly in Germany, a consistent supply-oriented policy for more investment and innovation is required. The German government's growth initiative already contains a number of helpful measures in this regard. We must continue in this direction persistently and at a real German pace," summarises the VDMA Chief Economist.

Source: VDMA, Photo: Fotolia