The German VDA has announced that May incoming orders in mechanical and plant engineering remained well below the level of the same month last year. Overall, orders fell by 10 percent in real terms.
Demand from overseas fell by 18 percent, while domestic orders rose by 9 percent. “Without the large-scale plant business, domestic orders would also have fallen sharply. The downward trend of the past few months continued in May,” explains VDMA Chief Economist Dr. Ralph Wiechers.
“In the month under review, 36 percent fewer orders came from the euro area and 9 percent fewer orders from non-euro countries. “Our picture of persistently weak global investment demand is confirmed. The backlog of orders for the coming months is still large enough, but the number of companies that are feeling a clear change here is increasing,” says Wiechers, referring to the association’s most recent lightning survey.
In the less volatile three-month period from March to May 2023, orders fell by 12 percent in real terms compared to the previous year. 6 percent fewer orders came from Germany and 15 percent fewer orders were booked from export markets. The euro countries remained 23 percent below the previous year’s level, the minus from the non-euro countries was 11 percent.
For more information: www.vdma.org