industry
Less orders for German mechanical engineering
After a good start to the year, the orders for German mechanical engineering are collapsing. The European internal market cannot compensate for uncertainty around the US tariffs.
Germany’s machine and plant manufacturers raised significantly fewer new orders in June. Despite a strong demand from the euro countries, the entire second quarter also declined by 2 percent, as the VDMA industry association in Frankfurt reports. Thanks to a strong opening, the real order values remained 1 percent in the first half of the year.
“This increase only comes from the increasing demand from the euro countries and should be a positive sign that Europe is actually in the process of strengthening its own location,” explains VDMA chief host Johannes Gernandt.
Euro zone does not compensate alone
Orders from the euro zone rose by 19 percent in the second quarter compared to the same period last year, but could not compensate for the losses from domestic (-1 percent) and especially from non-euro countries (-9 percent). In June, 13 percent fewer orders came from outside the euro zone than a year earlier. Overall, the month concluded 5 percent fewer orders than a year ago.
The VDMA expert attributes the declines to the smoldering customs disease with the USA. The effects of the now planned customs rate of 15 percent on imports to the USA cannot yet be estimated. “After all, there is now expensive planning security for companies – if the” deal “has existed.”
dpa
Source: Stern
