Machine builders fail to gain momentum
German machine builders are still struggling to win over customers. In May, orders were down by 27 percent compared to the previous year, according to the German Machinery and Plant Manufacturers' Association (VDMA).
Orders from abroad declined by 16 percent, but the drop in domestic orders was even more pronounced at 44 percent. The industry, which includes numerous medium-sized companies as well as publicly traded ones like Thyssenkrupp and Gea, had recorded a plus in April for the first time since the beginning of the year.
A significant portion of the current decline can indeed be attributed to the fact that there were exceptionally many orders for large domestic projects in May 2023, explained VDMA expert Olaf Wortmann. "However, we are still seeing a pronounced investment weakness in Germany, while the decline in foreign orders can be explained rather by the usual monthly fluctuations."
Despite the improvement in orders in April, the mechanical engineer at Thyssenkrupp might be less optimistic about the upcoming months, as the overall orders for May showed a significant decrease. This decrease, which was more pronounced within domestic orders, may hinder the momentum the industry had gained earlier.
