Mechanical engineering
VDMA: Order intake remains in the red
The global economy, weakened by trade disputes and political upheaval, was further impacted by the coronavirus pandemic, according to the VDMA. This is also reflected in the significant drop in orders in the mechanical and plant engineering sector.
Companies in the mechanical and plant engineering sector in Germany recorded a significant drop in their order books in the first six months of the current year, as announced by the VDMA. In the first half of 2020, they recorded a decline in orders of 16% in real terms compared to the previous year. The decline in orders from abroad was significantly greater than the drop in domestic orders.
"This decline is due to a global economy weakened by trade disputes and political upheaval, which was also hit hard by the Covid-19 pandemic," explained VDMA economic expert Olaf Wortmann.
In June 2020, incoming orders in the German mechanical engineering sector fell by 31% in real terms. While domestic orders were down by 12%, orders from abroad fell by as much as 38%. "However, a base effect plays a role here: In June 2019, there was an enormous amount of large-scale plant business in orders from non-euro countries. The benchmark for the previous year's comparison is therefore extremely high," summarized Wortmann. Orders from non-euro countries fell by 44%. Machine manufacturers recorded a 14 percent drop in orders from the eurozone in June.
The difficult situation for the mechanical engineering sector is also clearly evident in the three-month period from April to June 2020. Orders fell by 30% compared to the previous year. Domestic orders fell by 20%, while orders from abroad dropped by 34%. Orders from euro countries shrank by 24%, while orders from non-euro countries fell by 38%. as
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