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German Machinery Sector Faces Decline Amid Weak Orders

The lack of demand from key markets and insufficient government support are impacting the industry's outlook.

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Overview

  • The VDMA reports a significant drop in orders for German machinery manufacturers, with a 4% decrease in September and an 8% decline over the first nine months of the year compared to 2023.
  • Domestic orders fell sharply by 16% in September, while international orders remained stable due to large-scale projects.
  • The VDMA attributes the downturn to weak demand in major markets like the USA and China, alongside a lack of supportive economic policies from the German government.
  • In response to the ongoing challenges, the VDMA has revised its production forecast for 2024, predicting an 8% decline compared to the previous year.
  • Looking ahead to 2025, the VDMA anticipates a further production decrease of 2%, reflecting continued market uncertainties.