"The signs of an economic bottoming out for the mechanical and plant engineering industry in Germany are becoming increasingly clear," said Johannes Gernandt, chief economist of the industry association VDMA, on Wednesday. This is reflected in the stagnation of orders year-on-year and, in particular, in the rising number of orders in the fourth quarter. For 2026, the association continues to expect a modest increase in production of one percent. Beyond that, it is up to policymakers to initiate structural reforms to improve the competitiveness of the location, which would enable sustainable and higher growth.
Overall, sentiment in the mechanical and plant engineering sector has recently improved slightly. According to a VDMA economic survey conducted in January, nearly 30 percent of the 962 companies surveyed rated the current situation as "very good." In the previous survey conducted in October, this figure stood at 23 percent.
(Report by Tom Käckenhoff, edited by Myria Mildenberger. For inquiries, please contact our editorial team at berlin.newsroom@thomsonreuters.com (for politics and economy) or frankfurt.newsroom@thomsonreuters.com (for companies and markets).)
