Slight relaxation in the order books: Orders in the machinery and plant engineering sector in Germany increased by a real 4 percent in July compared to the previous year.
The impulses came exclusively from non-Euro countries, where orders increased by 10 percent. As a result, foreign orders also rose by 7 percent in the reporting month. However, domestic business and order intake from Euro partner countries remained at last year's level. 'The business with countries outside the Eurozone was also driven by orders for large plants, and July last year was comparatively weak.
Overall, the dynamics in the current year after seven months remain subdued with an order increase of 2 percent,' says VDMA Chief Economist Dr. Johannes Gernandt. 'Of course, the uncertainty caused by the aggressive tariff policy of US President Donald Trump plays a role here. But the ongoing reform backlog in Germany and Europe also hampers investments. The promised relief for companies must come in the autumn, and the federal government is particularly called to account,' warns Dr. Gernandt.
In the less volatile three-month period from May to July 2025, companies also recorded an order increase of a real 2 percent. Domestic orders fell by 1 percent, while foreign orders recorded an increase of 3 percent. Orders from Euro countries increased by 14 percent, while non-Euro countries recorded a decrease of 1 percent.
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