Germany Report Orders Falling By 15 Percent
The VDMA organization has reported, that in June 2023, Germany’s incoming orders in mechanical and plant engineering were well below the previous year’s figure. Orders fell by 15 percent in real terms. 18 percent fewer orders came from Germany and 14 percent fewer orders from export markets. Orders from the euro countries alone showed a comparatively more positive development with a decline of only 2 percent, while the non-euro countries posted a decline of 19 percent. “Thus, the balance for the first half of the year is clearly negative. Many companies are still living on high order backlogs, but the space is slowly getting tight when it comes to new orders. A trend reversal is not yet in sight,” says VDMA chief economist Dr. Ralph Wiechers.
The bottom line for the first half of 2023 was a decline in incoming orders of 14 percent in real terms compared to the previous year. From January up to and including June, domestic orders fell by 11 percent, and 15 percent fewer orders came from abroad (euro countries: minus 16 percent, non-euro countries: minus 15 percent). “Mechanical and plant engineering is now feeling the full effects of the reluctance to invest in practically all sales regions. There are many causes. The effects of the restrictive monetary policy to curb inflation are making themselves felt. As are the uncertainties in the face of tough geopolitical disputes. And of course the readjustment of companies and their business models as a result of the transformation – all in all, an unhealthy mix of diverse burdens.
For more information: www.vdma.org
