Incoming orders in mechanical and plant engineering
Significant loss at the end of the year
The mechanical and plant engineering sector can look back on a mixed year in 2022. An initial double-digit increase in orders turned into a price-adjusted decline of 4% overall compared to the previous year over the course of the year. Domestic orders fell by 5% and foreign orders by 4%.
While growth in orders was still achieved in the first three quarters of 2022, demand for capital goods subsequently collapsed. For the fourth quarter of 2022 as a whole, the decline in orders amounted to 16% compared to the previous year. Domestic orders shrank by 10% and foreign orders by 18%.
In December 2022 alone, the industry fell 18% short of the previous year's result in real terms. Domestic orders fell by 8%, while orders from abroad were down 22%. After the record level in December 2021, numerous large-scale plant orders at the end of 2022 were also unable to turn the result around.
"The December figures are not surprising for three reasons: Firstly, we have a base effect. Secondly, there were cancellations. This is not unusual for December, as companies go through their books at the end of the year and adjust where necessary. And thirdly, as expected, the recent less negative reports from the economic environment are not yet reflected in the orders placed by companies in the mechanical and plant engineering sector," comments VDMA Chief Economist Dr. Ralph Wiechers.
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