Mechanical engineering: Surprising rise in orders in February
According to data from the German industry association VDMA, orders in the mechanical engineering sector rose by an unexpectedly strong 8% in real terms. Part of this growth was due to large-scale plant business and part to component business.
After a subdued start to the year, order books in the machinery and equipment manufacturing industry filled up unexpectedly strongly in February, both from abroad and domestically. This is according to data from the German industry association VDMA. Overall, companies recorded an increase in orders of 8% in real terms compared to the previous year, with domestic orders up 11%, which was even more surprising than foreign orders, which grew by 7% (euro countries: up 4%, non-euro countries: up 9%).
Reluctance to invest
"Part of this growth is based on large-scale plant business, part on component business for ongoing production worldwide. Stocks have largely been reduced and reorders have to be placed. Investments in new machines or even turn-key projects, on the other hand, are still far too rare. In short: February was – once again! – a good month in an – unfortunately! – difficult environment," says VDMA Chief Economist Dr Ralph Wiechers.
In the less volatile three-month period from December 2024 to February 2025, companies recorded an increase in orders of 4% in real terms compared to the previous year. Domestic business (minus 5%) recorded significant declines, while foreign business increased (plus 8%). Eurozone countries ordered 6% more machinery and equipment during this period, while orders from non-eurozone countries increased by 8%.
Source: VDMA
Caption: Production of organic printed electronics. (Image: Heidelberger Druckmaschinen)