The mechanical and plant engineering sector in Germany continues to await a significant revival of investments and thus its order books. In May, the order situation was mixed. While domestic orders fell by a real 3 percent, orders from abroad increased by 1 percent. However, there was a significant disparity here: Orders from Euro partner countries were 21 percent below the previous year's month, while orders from non-Euro countries increased by 11 percent. Thus, the industry recorded a slight decline in orders of 1 percent in real terms compared to the previous year in May 2026.
Unfortunately, there is only a hint of real dynamism in the business. While there are regions and individual customer sectors where demand for machinery and plants is rising, concerns about global crises and the resulting potential supply shortages of raw materials remain significant. Thus, the industry remains in a wait-and-see mode,” says VDMA Chief Economist Dr. Johannes Gernandt. “This year, there has only been one month with order increases in the domestic market, and that was influenced by special effects. We cannot say it often enough: The federal government must not wait a day with reforms that significantly relieve companies; our industrial location urgently needs a substantial upgrade,” emphasizes Dr. Gernandt.
In the three-month period from March to May 2026, domestic orders increased by 3 percent, while foreign orders rose by 13 percent. Here, the March influenced by large orders is noticeable as a special factor. Orders from non-Euro countries increased by 22 percent, while Euro countries recorded a decrease of 8 percent.
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