Incoming orders in mechanical and plant engineering
Encouraging growth at a low level
Incoming orders in the mechanical and plant engineering sector in Germany developed positively in May with real growth of 9%.
"However, May of the previous year was a particularly weak month for orders and the basis for comparison was correspondingly low," says VDMA Chief Economist Dr. Johannes Gernandt. Domestic business increased by 2%, while orders from abroad rose by 12% in May.
For the first five months of the current year, a slight overall increase in orders of 3% is therefore on the books, driven by growth of 4% in international business, while domestic orders remained unchanged. "This development confirms our slight optimism for the second half of the year. The order situation underpins our production forecast of minus 2% in real terms for 2025. Global uncertainty remains high. This makes it all the more important that the EU quickly reaches an agreement with the USA to end the ongoing trade disputes and prevent further escalation," emphasizes the VDMA Chief Economist.
In the less volatile three-month period from March to May, companies recorded an increase in orders of 2% in real terms compared to the previous year. Domestic business (minus 1 percent) was still slightly below the previous year's figure, while foreign business increased (plus 4 percent). The euro countries ordered 23% more machinery and equipment in this period, while orders from non-euro countries were down 3%.
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