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Incoming orders in mechanical engineering

Andreas Mühlbauer,

Weak domestic market and special effects abroad

In September, incoming orders in the mechanical and plant engineering sector fell 4% short of the previous year's level in real terms.

The economic weakness in the mechanical and plant engineering sector is clearly reflected in the balance sheet for the first three quarters. © Shutterstock

While domestic orders fell by 16%, foreign orders maintained the previous year's level with the help of large-scale investment transactions. Orders from euro countries increased by 4%, while orders from non-euro countries fell by 1%. "The weak domestic demand is not surprising, companies are very unsettled. There is a lack of impetus from many sales markets. However, there is also a lack of a clear business-friendly course from the German government with measures that would stimulate new investments," says VDMA economic expert Olaf Wortmann.

The economic weakness in the mechanical and plant engineering sector is reflected even more clearly in the balance sheet for the first three quarters of the current year. From January to September, orders fell by a total of 8% in real terms compared to the previous year. Domestic orders in this period were 15% below the previous year's figure, while foreign orders fell by 5% (eurozone: minus 10%, non-eurozone: minus 4%).

In the third quarter of 2024, companies recorded a year-on-year decline in orders of 1% in real terms. From July to September, domestic orders were down 9%, while orders from abroad were up 2% (euro countries: down 1%, non-euro countries: up 3%).

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