Orders received by German mechanical engineering firms decline for 6th time in H1

Source: Xinhua| 2019-08-05 20:04:55|Editor: Shi Yinglun
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BERLIN, Aug. 5 (Xinhua) -- In the first half of 2019, nine percent fewer orders were received by the export-oriented industrial sector than in the same period of the previous year, the German Mechanical Engineering Industry Association (VDMA) announced on Monday.

"This decline is attributable to the weaker global economy, the numerous mostly politically motivated upheavals and the far-reaching structural change in the automotive industry," said VDMA economic expert Olaf Wortmann.

Adjusted for price increases, orders in June had declined 5 percent, which was the sixth consecutive decline since the beginning of the year, according to the association.

Domestic orders fell by 16 percent in June while orders from abroad were able to maintain their "already high level" of the previous year, the VDMA announced.

"The number of large orders from non-euro countries is surprising," noted Wortmann.

Orders for German mechanical engineering companies from non-euro countries increased by 2 percent in June, according to Wortmann.

It was "extremely rare" that an already high level of the previous year could be maintained, let alone expanded, for large-scale orders, according to the VDMA economic expert.

Meanwhile, orders for German mechanical engineering companies from within the euro zone declined by 9 percent in June 2019, the VDMA announced.

During the three-month period from April to June 2019 orders were down 8 percent year-on-year and the "weakening mechanical engineering economy was also evident," according to the association.

Domestic orders fell by 12 percent and foreign orders by 6 percent during the period April to June 2019.

The VDMA had recently capped its forecast for 2019 and was expecting a real decline in production of 2 percent. Last year, the German mechanical engineering industry achieved a plus of around 2 percent.

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