German mechanical engineering sector posts optimistic outlook for 2017
Incoming orders in the mechanical engineering sector in Germany increased by 14 percent in real terms compared to the previous year.
German industries have picked up and are investing in machines, according to VDMA, the association that represents the mechanical and systems engineering industry in Germany and Europe.
“It is particularly encouraging that domestic orders increased by 20 per cent,” said Dr Ralph Wiechers, VDMA chief economist. In view of the capacity utilisation of German industrial customers, this increase is “long overdue, but also absolutely crucial for retaining competitiveness.”
Foreign orders grew by 12 per cent to the relatively low comparative basis. The stimulus for this came from both euro partner countries (+11%) and non-euro countries (+12%).
In the three months from September to November, incoming orders increased by 12 per cent in real terms compared to the previous year. Domestic and foreign orders both grew by 12 per cent, with orders from euro countries rising by 13 per cent and those from non-euro countries gaining 11 per cent.
Compared to the previous year, mechanical engineering companies increased production by a price-adjusted 3 per cent in 2017 up to November. “This is exactly in line with the forecast made by our association. Subject to the results for December, we are on track to achieve the annual target we set ourselves,” Wiechers summed.