Overall disappointing order situation
In June 2024, incoming orders in the mechanical and plant engineering sector remained significantly below the previous year’s figure. Orders fell by 9% in real terms. Domestic orders were down 8%, while orders from abroad fell by 10%. Orders from euro countries fell even more sharply, dropping by 12%. Orders from non-euro countries were down 8%.
“The order situation is disappointing overall. This means that the balance for the first half of the year is clearly negative. A turnaround is not yet in sight, and what’s more, the economic stabilization that was still emerging at the beginning of the year has recently suffered a setback,” says VDMA Chief Economist Dr Ralph Wiechers.
The bottom line for the first half of 2024 was a year-on-year decline in incoming orders of 12% in real terms. From January to June inclusive, domestic orders fell by 18%, with 9% fewer orders coming from abroad (euro countries: minus 14%, non-euro countries: minus 7%). “To ensure that the first signs of a foreign-driven cyclical recovery are not thwarted, particularly in Germany, a consistent supply-oriented policy for more investment and innovation is required. The German government‘s growth initiative already contains a number of helpful measures in this regard. We must continue in this direction persistently and at a real German pace,” summarizes the VDMA chief economist.
