German mechanical engineering companies continue to struggle with weakening orders from their customers.

In July, incoming orders fell by eleven percent compared to the same month last year, according to the German Engineering Federation (VDMA) on Monday. Eight percent fewer orders were received from Germany. In the important foreign business, the drop amounted to 13 percent. "Companies are still recording increases in sales," said VDMA chief economist Ralph Wiechers. Sales in July, for example, rose by eleven percent in nominal terms. "However, due to a lack of sufficient new orders, order backlogs and thus the remaining buffer for production and sales are gradually decreasing."

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