The German mechanical engineering sector continues to grapple with a persistent drop in orders. In September, orders fell by 19 percent compared to the same month last year, according to the German Engineering Federation (VDMA) on Monday. Export-oriented manufacturers of "Made in Germany" machinery recorded a 24 percent decrease in orders from abroad and a five percent decline domestically. The association noted that this downturn was partly due to one-off effects involving large-scale plant orders in the previous year. For the third quarter, covering July through the end of September, the sector saw a six percent decrease in orders, while the first nine months of the year registered a one percent decline.
This predominantly medium-sized industry, which includes publicly listed companies such as Thyssenkrupp and Siemens Energy, employs around one million people and serves as a backbone of the German economy. Companies have been struggling for some time with customers' reluctance to invest.
(Report by Tom Käckenhoff, edited by Ralf Banser. For inquiries, please contact our editorial team at berlin.newsroom@thomsonreuters.com (for politics and economic affairs) or frankfurt.newsroom@thomsonreuters.com (for companies and markets).
