- The mechanical engineering market displaying subdued activity remains unfazed.
The German mechanical engineering sector is still experiencing a shortage of orders. As per the industry association VDMA, the worth of orders decreased by 5% compared to the previous year in July. Despite this being the first single-digit decline since October 2023, it's not a good indication considering the previous month's low performance. VDMA's chief economist, Ralph Wiechers, explains, "Given the weak base, the bar wasn't set particularly high."
Over a more stable three-month period, from May to July, orders went down by 14%. Wiechers points out that there's a lack of that initial push to kickstart new orders. There's no indication of this from the global economy or domestically.
Despite the decrease in orders within the German mechanical engineering sector, Ralph Wiechers, VDMA's chief economist, highlights that the reduced order volume was expected due to the weak base established previously. Further, Wiechers mentions the absence of a significant push to stimulate new orders in the recent three-month period.
