The companies in mechanical and plant engineering have had a mixed first half of 2025 in their order books. While orders in June fell short of the previous year's level by a real 5 percent, there was a slight increase of 1 percent for the first six months of the current year. 'This increase comes solely from the rising demand from Euro countries and should be a positive sign that Europe is indeed strengthening its own location,' explains VDMA chief economist Dr. Johannes Gernandt. In contrast, the order decline of a real 2 percent in the second quarter reflects the uncertainty primarily triggered by the smoldering customs dispute between the EU and the USA. 'The impact of the now proposed tariff rate of 15 percent on imports into the USA on mechanical engineering cannot yet be assessed. At least there is now expensive planning security for the companies - if the 'deal' holds,' says Dr. Gernandt.
In June, orders from both domestic and foreign sources fell by a real 5 percent compared to the previous year. The increase of 16 percent from Euro countries was offset by a decline in orders of 13 percent from non-Euro countries. Overall, there was an order decline of 5 percent in the books.
In the second quarter of 2025, there were 2 percent fewer orders from the domestic market, while foreign orders recorded a decline of 1 percent (Euro countries: plus 19 percent, non-Euro countries: minus 9 percent). This resulted in an order decline of 2 percent from April to June compared to the previous year.
In the first half of 2025, companies in the domestic market recorded an order decline of 1 percent, while foreign orders increased by 2 percent. Orders from the Eurozone rose by 16 percent, while orders from non-Euro countries fell by 3 percent. In total, there was a slight order increase of 1 percent.
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