BERLIN (Reuters) -German engineering orders plummeted in September, with a double-digit percentage decline driven by a base effect abroad and one-off special effects last year, the VDMA engineering
German Engineering Orders Experience Significant Drop in September
BERLIN (Reuters) -German engineering orders plummeted in September, with a double-digit percentage decline driven by a base effect abroad and one-off special effects last year, the VDMA engineering association said Monday.
Overall orders dropped by 19% year on year in September, with domestic orders down 5%, while those from abroad fell 24%.
Euro zone orders were down 13% in September while there was a 27% decrease from non-euro zone partner countries.
The tumble was mainly due to a base effect abroad, said VDMA chief economist Johannes Gernandt, and there were also special effects last September due to orders for large-scale plants.
However, those drivers "should not obscure the fact that the mechanical engineering industry continues to experience a noticeable slump in demand and underutilisation," said Gernandt.
This will only fundamentally resolve itself when the many crises in global trade, such as those surrounding the U.S. tariffs, are resolved and reforms are implemented in Germany and Europe that really take the pressure off companies, he said.
In the less-volatile July-to-September period, orders overall fell 6%, with domestic contracts dipping 3% and foreign ones down 7%.
CHANGE
SEPTEMBER
overall -19% y/y
of which German -5% y/y
foreign -24% y/y
-6% y/y
JULY TO SEPT
of which German -3% y/y
foreign -7% y/y
(Reporting by Miranda Murray, Editing by Friederike Heine)
