German mechanical-engineering orders decline
Posted on 20 Sep 2019 and read 829 times
In the first half of 2019, mechanical-engineering orders in Germany declined by 9% in real terms compared with the previous year, with the contraction at home and abroad at the same level.
Olaf Wortmann, an economic expert at the VDMA (the German Mechanical Engineering Industry Association), said (www.vdma.org
): “This decline is attributable to the weaker global economy, the numerous mostly politically motivated upheavals and the far-reaching structural change in the automotive industry.
“In June 2019, the German mechanical-engineering sector’s order intake fell short of the previous year’s level by 5% in real terms; and while domestic orders fell by 16% in June, orders from abroad were able to maintain the high level of the previous year.
“Indeed, the number of large orders from non-euro countries is surprising.
"The level was already high in June 2018 and has now risen again, resulting in an increase of 2% in orders from non-euro countries.
“It is extremely rare that for large-scale orders an already high level of the previous year can be maintained, let alone expanded.”
In the three-month period from April to June 2019, the weakening mechanical-engineering economy was also evident, with orders down 8% year on year.
Domestic orders fell by 12% and foreign orders by 6%.
Orders from the euro countries shrank by 7%, while orders from non-euro countries fell by 5%.