FRANKFURT (dpa-AFX) – German mechanical and plant engineering recorded stagnating incoming orders in April. While prices-adjusted orders from abroad were 4 percent higher than in the same month last year, domestic demand fell by 7 percent. The bottom line is that the order value remained unchanged, as reported by the industry association VDMA. The companies showed themselves to be robust despite the geopolitical crises.
VDMA chief economist Johannes Gernandt sees growing location problems in Germany despite individual bright spots such as the boom in equipping data centers. “There is still too much talk about measures to strengthen competitiveness and far too little implementation,” he criticized. The association calls for lower taxes, more flexible labor markets and a reduction in bureaucracy.
In the less volatile three-month average from February to April, the industry recorded an increase in orders of 5 percent – driven primarily by large orders in the exceptionally strong March. Demand came primarily from countries outside the euro area (+9 percent), while the Eurozone stagnated and domestic business even fell by 2 percent./ceb/DP/stk