Pleasing first quarter for mechanical engineering

The first quarter of 2025 resulted in an overall increase in orders of 4% - the first positive quarterly balance of orders in three years. March also closed with an increase in orders of 4%.

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The first few months of 2025 have been encouraging for the machinery and equipment manufacturing sector: In March, companies once again recorded a slight increase in orders of 4% in real terms compared to the previous year. The weakening domestic business (minus 3%) was offset by a 6% increase in foreign orders. A total of 19% more orders came from euro countries - partly due to large orders - while non-euro countries recorded growth of 2%. "The year has got off to a good start, but there is still a great deal of uncertainty about future developments - especially with regard to the USA's tariff policy and possible countermeasures," says VDMA Chief Economist Dr Johannes Gernandt.

VDMA Chief Economist Dr. Johannes Gernandt © VDMA

After slight increases in orders were recorded in January and February, orders for the first quarter of 2025 as a whole were up by 4% in real terms compared to the previous year. This was the first three-month period since the first quarter of 2022 with an increase in orders. Domestic orders from January to March were 1% higher than the previous year's figure, while orders from abroad were up 5% (euro countries: up 12%, non-euro countries: up 2%). "We are now seeing a turning point in international business, while domestic business remains difficult. It is therefore all the more important that the new German government now directly introduces bold reforms to strengthen the country, which will lead to more investment again," demands Dr Gernandt.

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