After mini-growth in 2022, German machine builders expect production to fall in the coming year. According to the industry association VDMA, production growth of one percent is still possible this year. A minus of two percent is expected for 2023. “The wind is blowing in the face of the global economy and thus of mechanical and plant engineering,” said VDMA chief economist Ralph Wiechers. Due to the weaker growth in China and the Ukraine war, restraint is to be expected in investments. In addition, the high level of inflation and the braking maneuvers by the central banks in the form of interest rate hikes dampened investment sentiment. According to the VDMA, incoming orders fell by 14 percent in July. Domestic orders were down 17 percent, while orders from abroad fell by 12 percent. Another survey also shows that things are not going well in the manufacturing sector in Germany at the moment: The purchasing managers’ index for industry fell by 0.2 to 49.1 points in August, according to the financial service provider S&P Global for the monthly survey of around 420 companies. The barometer, which summarizes key figures such as orders, production and employment, remained below the 50 point threshold for the second month in a row.
VDMA – mechanical engineers expect decline – economy
