Germany’s mechanical engineering incoming orders rise 7% Y-o-Y in August ’24

Germany’s mechanical and plant engineering sector reported on Wednesday a 7 per cent year-on-year increase in incoming orders in August 2024, according to the German Machinery and Equipment Manufacturers Association (VDMA).

Foreign orders surged by 13 per cent, driven by large-scale projects outside the eurozone, which saw an 18 per cent rise, while domestic orders dropped 7 per cent.

Despite this growth, VDMA expert Olaf Wortmann noted that the figures were boosted by a weak prior-year baseline and special factors, with orders from the eurozone stagnating.

“The previous year’s order figures were extremely weak, so the basis was very low. Companies also benefited from the large-scale plant business from outside the eurozone, which recorded an increase of 18 per cent, while orders from the eurozone stagnated,” Wortmann explained.

“Overall, despite this outlier, incoming orders have not yet bottomed out,” he concluded.

In the three-month period from June to August, orders declined by 3 per cent, with a 6 per cent drop in domestic orders and a 1 per cent dip in foreign demand.

Non-euro countries saw a slight 1 per cent rise in orders, while eurozone orders remained 6 per cent below last year’s levels.

Attribution: VDMA

Subediting: Y.Yasser