VDMA
Weak first half of the year for machinery exports
German mechanical and plant engineering companies suffered significant losses on foreign markets in Q1 and Q2 2024. Exports are nominally 4.8% lower than in the previous year.
According to VDMA statistics, in the first half of 2024, machinery and plant manufacturers from Germany recorded a nominal decline in exports of 4.8% to EUR 100.6 billion. Adjusted for prices, exports of machinery fell by 7%.
VDMA Chief Economist Dr. Ralph Wiechers commented on the figures: "The declining export figures are not surprising given the persistently weak industrial economy worldwide, unresolved geopolitical upheavals and far-reaching structural challenges. Weak demand from Europe and China in particular, as well as declining momentum from the USA, are weighing on German machinery exports."
Sharp declines in Europe, bright spots in Mexico and India
Exports to the countries of the European Union fell by 8.4% in the first half of the year. Particularly sharp declines were recorded in Italy (-15.7%), the Czech Republic (-12.2%) and Austria (-11%). In contrast, exports to the growth markets of Mexico and India developed positively. Deliveries to Mexico rose by 24.6% and to India by 5% in the first half of the year.
Chinese market still without impetus
Industry exports to the USA and the UK both rose by 0.7% in the first half of the year, albeit with a downward trend over the course of the six months. Nevertheless, with an export volume of EUR 13.9 billion and an export share of 13.8% in the period from January to June, the USA remains by far the most important single market for the mechanical and plant engineering sector.
The gap to China (export volume: EUR 9 billion) has grown, as German machinery exports to the People's Republic continued to weaken with a half-year decline of 5.3%. "With China, but now also the USA, important growth drivers for foreign demand are disappearing, not only for the German mechanical engineering industry, but worldwide. There is currently simply no broad-based, industry-driven global upturn," concludes Dr. Wiechers.
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