At the beginning of the year, orders from Germany's mechanical and plant engineering sector fell significantly. In January, incoming orders were 18% below the previous year's level in real terms. Orders from Germany were down 16%, while foreign orders were down 19% compared to the same month last year. At 8%, the decline in orders from the euro countries was significantly less than the drop from the non-euro countries, from where orders fell by 23%.
“Last year, January was a strong start with an increase in orders of almost 20%. Therefore, the statistical base effect now plays a decisive role in the equally strong decline. But many customers are still reluctant to make new investments in view of the considerable uncertainties. Although the situation in the supply chains has eased somewhat, the Ukraine war, high inflation and the long-weakening Chinese economy are still dampening the economy,” explains VDMA chief economist Dr Ralph Wiechers.
In the less volatile three-month period from November 2022 to January 2023, orders fell by 17% in real terms compared to the previous year. Orders from euro countries fell by 18%, the minus with non-euro countries was 20%. In Germany, 10% fewer orders were booked, while orders from abroad were down by 20%.
A video with Dr Ralph Wiechers can be found on the VDMA websitewww.vdma.org
