Overview

• German machinery and plant builders saw real new orders climb 9 percent in May, driven largely by a 12 percent surge in foreign demand.
• Domestic demand also improved, with orders edging up 2 percent after adjusting for price rises.
• Cumulative orders from January through May rose 3 percent year on year, led by a 4 percent gain in export business while domestic volumes held steady.
• The VDMA predicts a 2 percent real contraction in production for the full year, citing unresolved US-EU tariff disputes that continue to dampen investment.
• May’s strong growth was partly boosted by a low comparison base from an unusually weak month a year earlier, tempering expectations for sustained gains.