BERLIN, Nov. 19 (Xinhua) -- Exports by Germany's mechanical engineering companies continued to rise during the first nine months of 2018, a report published on Monday by the German Mechanical Engineering Industry Association (VDMA) shows.
VDMA cited data from the Federal Statistical Office that machine deliveries had increased by a nominal 5.2 percent or 6.5 billion euros to 131.9 billion euros (150.7 billion U.S. dollars) between January and September compared with the same period last year.
In spite of the general upward trend, the VDMA noted, however, that the pace of exports had slowed in the course of 2018. Exports increased by 5.9 percent on average at the end of the first half of the year, while export growth subsequently came in at a lower rate of 3.9 percent in the third quarter (Q3).
"September showed the first signs of a slowdown, with exports falling by 0.2 percent," a statement by VDMA chief economist Ralph Wiechers read. Nevertheless, Wiechers added that "one should not overestimate a single monthly figure" as only the coming months would show how ongoing global trade disputes affected mechanical engineering firms in Germany.
China regained its position as the most important individual export market for the sector so far this year. Between January and September, exports rose by 11.4 percent to 14.23 billion euros. China thus accounted for 10.8 percent of total German machinery exports.
Exports to the United States increased by 6.9 percent to 14.16 billion euros over the same period, accounting for 10.7 percent of total exports. The volume of U.S. exports still ranked ahead of those to China in the first half of the year.
Total exports to European Union (EU) countries increased by 5.6 percent to 62.14 billion euros. By contrast, business with Turkey remained challenging and witnessed an 8.9 percent fall in industry exports.
"Business is becoming increasingly difficult. All the more pleasing is the ability of many medium-sized mechanical engineering companies to hold their own in global competition despite all trade barriers," Wiechers analysed the latest export data.
Speaking to Xinhua on Monday, Thiess Petersen, senior economics expert at the Bertelsmann Foundation, highlighted that German exports had fallen by 1.2 percent as a whole in September 2018. Although monthly swings were not uncommon, Petersen cautioned against disregarding the implications of lasting "uncertainties in foreign trade" which could affect engineering firms as well.
"Uncertainty surrounding the economic development of the United Kingdom, Turkey and Italy in particular are weighing on the European investment climate," he explained. A failure to resolve these uncertainties swiftly could result in lower corporate investment across the continent which would in turn also hit the machine engineering sector.
Counting around 1.35 million workers in total, mechanical and plant engineering is Germany's single largest industrial employer.
