German engineering orders fall again in September, says VDMA
2024.10.31 05:22
BERLIN (Reuters) – German plant and equipment makers’ orders fell in September, after a one-off rise in August, the VDMA association said on Thursday, as a double-digit fall in domestic contracts were cushioned by those from abroad remaining stable.
Overall, orders were down 4% in real terms on the year in September, following a 7% rise in August.
Domestic orders last month tumbled 16% while foreign contracts remained stable thanks to the help of large-scale plant business.
The industry’s economic weakness was more pronounced in the nine-month figures, which showed orders from January to September down 8% compared with the same period last year.
In the less-volatile three-month period from July to September, orders were 1% lower overall, with a 9% fall in domestic contracts and 2% increase in those from abroad.
“The weak domestic demand is not surprising, companies are very unsettled. There is a lack of impetus from many sales markets,” said VDMA economic expert Olaf Wortmann.
“But there is also a lack of a clear, business-friendly course from the German government with measures that would stimulate new investments,” he added.
The coalition partners have turned their attention towards reviving the economy, meeting with industry associations and business representatives to address the issue as Europe’s largest economy is set to contract a second consecutive year.
SEPTEMBER CHANGE
overall -4% y/y
of which German -16% y/y
foreign +0% y/y
JULY TO SEP -1% y/y
of which German -9% y/y
foreign +2% y/y
