VDMA
Weak start to the year for incoming orders
Incoming orders in the German mechanical and plant engineering sector fell significantly in January 2026. Price-adjusted orders were 6% below the previous year's level. Both domestic and foreign orders declined, particularly from the euro partner countries.
Mechanical engineering companies in Germany received fewer new orders at the start of 2026. In January, price-adjusted orders were 6% lower than in the same month last year.
Domestic demand fell by 8% compared to January 2025. 5% fewer orders were received from abroad overall. At -8%, the decline in orders from euro partner countries was greater than for orders from non-euro countries, which fell by 4%.
"Some sentiment indicators had recently pointed upwards, so the decline in orders in January is a surprisingly weak start to 2026. So far it is only a monthly figure, we will have to wait and see how orders develop in the coming months. The war that has now begun in the Gulf region and the associated additional geopolitical uncertainty will certainly not help export-oriented companies and their customers to overcome the global weakness in investment," says VDMA Chief Economist Dr. Johannes Gernandt.
In the less volatile three-month period from November 2025 to January 2026, incoming orders were down 2% year-on-year in real terms. Domestic orders fell by 4% in this period, while foreign business declined by 1%. Orders from euro countries fell by 4%, while demand from non-euro countries stagnated.
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