Order intake in mechanical engineering June 2019: Large orders soften the decline
In the first six months of the current year, mechanical engineering companies in Germany recorded a significant drop in their order books.
In the first half of 2019, orders declindes by 9 per cent in real terms compared with the previous year, with the minus at home and abroad reaching the same level. "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," explained VDMA economic expert Olaf Wortmann.
In June 2019, order intake in the German mechanical engineering sector fell short of the previous year's level by 5 percent in real terms. While domestic orders fell by 16 per cent in the month under review, orders from abroad were able to maintain their already high level of the previous year. "The number of large orders from non-euro countries is surprising. It was already high in June 2018 and has now risen again, resulting in an increase of 2 percent in orders from non-euro countries. It is extremely rare that an already high level of the previous year can be maintained, let alone expanded, for large-scale orders," said Wortmann. By contrast, in the euro zone a 9 percent drop in orders was measured in June.
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.
In the three-month period from April to June 2019, the weakening mechanical engineering economy was also evident, with orders down 8 percent year-on-year. Domestic orders fell by 12 per cent and foreign orders by 6 per cent. Orders from the euro countries shrank by 7 percent, while orders from non-euro countries fell by 5 percent.