How the decline in orders in mechanical engineering affects German industry

How the decline in orders in mechanical engineering affects German industry

According to a report by blackout-news.de, German industry is recording significant declines in orders, which have hit mechanical engineering particularly hard. Compared to the previous year, the decline is an impressive 7.3%. Of particular concern is the decline in new orders in mechanical engineering, which stood at 13.5% in October. This is a drastic drop compared to the 9.8% increase in the previous month, clearly indicating a tight economic situation.

Other important areas such as the production of metal products, metal production and processing, the production of electrical equipment and the automotive industry also contributed negatively to the overall result in October 2023. The only positive exception is other vehicle construction, which includes aircraft, ships, trains and similar vehicles, where incoming orders increased by a significant 20.2%.

The impact on the market is very important. The significant declines in capital goods by 6.0% and intermediate goods by 1.4% compared to the previous month underline concerns about the health of the German economy. The fear of a further contraction of the German economy in the winter months is therefore justified. In addition, foreign orders fell by 7.6%, while domestic orders rose by 2.4%. This suggests that domestic demand could partially offset the losses in export business.

As a financial expert, I can conclude that German companies are faced with significant challenges. The low incoming orders could mean that companies have to reduce their production, which could result in a further decline in the German economy. It will therefore be crucial to closely monitor economic developments and the response of companies in the coming months.