Current financial status - Mechanical engineering sees an initial rise in orders after 18 months.
Machine builders in Germany experienced a growth in contracts for the first time in 1.5 years, signing deals worth 10% more compared to the previous year, after adjusting for inflation. The VDMA Association of Machine Tool Builders and Manufacturers in Frankfurt reported this upturn in April.
The rise in orders was partly attributed to the extra three working days in April this year, compared to the same month in 2023 which had been weaker. "We are positive that the downturn in orders has come to an end," shared VDMA's Chief Economist, Ralph Wiechers.
In the same month in 2024, domestic orders increased by 3%, while international orders jumped by 13%. However, the export-focused manufacturing sector witnessed a drop of 9% in real terms during the period from February to April 2024, when compared to the same period in 2023.
The medium-sized machine construction business - employing over a million people - had borne the brunt of the global economic downturn and domestic market slump in 2023. The industry's association anticipates a 4% production drop in the year 2024.
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The economic situation in the mechanical engineering sector improved significantly in Frankfurt am Main, as reported by the VDMA Association, leading to an increase in orders by 10%. This upturn in the German market is expected to positively impact the medium-sized machine construction businesses that employ over a million people. Despite this improvement, the export-focused manufacturing sector in Frankfurt saw a 9% drop in real terms during the first quarter of 2024.
