German machine tool orders were down by 4% in February compared with the same month a year earlier, according to the VDMA industry association. Export orders declined by 3%, while domestic demand fell by 6%.

VDMA chief economist Ralph Wiechers (pictured) said: “The orders situation leaves much to be desired. A solid rebound is required soon to ensure full plant utilisation.”

A statement from the VDMA said that the euro’s recent appreciation has contributed to the decline, making German exports more expensive in regions outside the 18-member single-currency bloc.