Mechanical Engineering Industry
by Hans Diederichs
Tentative easing at best
In August, companies in the mechanical and plant engineering sector posted a 14 percent drop in real orders. This is the smallest decline on a monthly basis since the beginning of the corona crisis.
August confirmed the picture of an at best tentative easing of the order situation in the mechanical and plant engineering sector. The companies recorded a 14 percent drop in real orders compared with the previous year. This is the smallest decline on a monthly basis since the beginning of the corona crisis. "Domestic orders fell by
19 percent in August, and thus more significantly than orders from abroad, which fell by 11 percent," said VDMA chief economist Dr. Ralph Wiechers, "Both the smaller decline and the difference between domestic and foreign orders are due to statistical base effects. The overall picture is that, while the worst is behind us, the recovery is taking time and remains vulnerable to disruption. Overall, the picture is becoming clearer that, while the worst is behind us, the recovery is taking time and remains vulnerable to disruption."
Orders from the euro zone fell by 8 per cent in August, with 12 per cent fewer orders coming from outside the euro zone.
In the less volatile three-month period June to August 2020 order intake fell by 22 percent in real terms compared with the previous year. Domestic orders were down 15 percent, while foreign orders were down 25 percent on the previous year. Orders from the euro countries shrank by 16 percent, while orders from non-euro countries were down 29 percent.
Source: VDMA Photo: Shutterstock