VDMA: Orders have probably bottomed out
by Hans Diederichs
Order intake in the mechanical and plant engineering sector continued to fall by double-digit percentages in July, although the decline slowed noticeably.
Compared to the previous year, orders were down 19 percent in real terms. The order result was thus better than in the previous months, which saw even sharper declines (April: minus 31 percent year-on-year, May: minus 28 percent, June: minus 31 percent). "The bar was high, as July 2019 was one of the strongest order months of the previous year. There is reason to hope that we have overcome the low point in terms of orders, even if we will continue to see negative rates compared to the previous year for some time," says VDMA Chief Economist Dr. Ralph Wiechers. A ray of hope was provided by Germany, where orders were 15 percent below the previous year's figure. From abroad, 21 percent fewer orders were booked. Orders from the euro countries were 22 percent lower, while orders from non-euro countries were down 21 percent.
"There is reason to hope that we have overcome the low point in orders, even if we will see negative rates compared to the previous year for some time to come.
In the less volatile three-month period from May to July 2020, order intake fell by 26 percent in real terms year-on-year. Domestic orders were down 17 percent and foreign orders were 30 percent down on the previous year. Orders from the euro countries shrank by 21 percent, while orders from non-euro countries were down 34 percent.
Source: VDMA e.V. Photo: Shutterstock