German Engineering Sector Faces Continued Decline in Orders

October saw a 9% year-on-year drop in orders, highlighting persistent challenges for Germany's machinery and equipment industry.

The VDMA reported a 9% decline in German engineering orders in October compared to the same month last year, with foreign orders dropping 14% and domestic orders increasing by 3%.
Cumulative orders for the first ten months of 2024 are down 8%, reflecting ongoing reluctance from customers to invest in new machinery.
Key export markets, including China and the United States, have shown weak demand, exacerbating the sector's challenges.
The VDMA forecasts an 8% decline in production for 2024 and anticipates a further 2% drop in 2025, citing global economic uncertainty and competitive pressures on German manufacturers.
While domestic orders showed slight improvement in October, the increase was attributed to a weak comparative base from the previous year, offering limited optimism for recovery.