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© wrangler dreamstime.com Analysis | August 04, 2017

Mechanical engineering starts full-swing into the second half of the year

Mechanical engineering companies in Germany are optimistic for the second half of the year. In the first half of 2017, incoming orders rose by four percent in real terms, writes industry association VDMA.
Mechanical engineering companies in Germany are optimistic for the second half of the year. In the first half of 2017, incoming orders rose by four percent in real terms. The 5 percent increase in orders from abroad was largely propelled by the increase in orders from euro partner countries (plus 12 percent; non-euro countries plus 3 percent). A slight increase of one percent was recorded in the first half of the year for domestic orders. “All in all, we are content that the upswing is starting to take shape and has hit almost all areas of mechanical engineering. Only a few sectors are still lamenting a drop in orders,” says VDMA Chief Economist Dr. Ralph Wiechers, commenting on the situation. “We were right to raise our forecast to a 3 percent production increase for the entire year of 2017.”

In June, incoming orders in German mechanical engineering increased by two percent in real terms when compared to the previous year. This was largely caused by demand from non-euro countries (plus 11 percent). “In contrast, the euro zone – minus 12 percent – was weakened by an unusually good level the year before,” explains Wiechers. “Domestic orders – minus 3 percent – continue to lag behind,” the VDMA Chief Economist adds.

Comparing the three-month period April to June 2017 to the same period last year revealed a 5 percent rise in incoming orders in real terms. Euro and non-euro countries respectively showed a plus of 10 percent, while domestic orders showed a minus of 4 percent.

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August 22 2017 10:36 AM V8.6.0-1