The export balance for the first half of 2026 is mixed for the machinery and equipment manufacturing sector in Germany. Exports fell nominally by 0.8 percent compared to the previous year, adjusted for price by 2.5 percent. Overall, machinery and equipment worth 99.3 billion euros were exported. Machinery imports increased during the same period by a nominal 2.2 percent to 47.9 billion euros.
“Geopolitical tensions, US tariff policy, and the continued weak business with China have burdened machine exports in the first half of the year. However, a largely stable second quarter and particularly the strong export increase of 6.8 percent in June limited the half-year decline to 0.8 percent,” comments VDMA economic expert Anke Uhlig on the half-year export balance.
Regional Development: USA Stable, China Weak, EU Mixed
In the export business to the USA, the US tariff policy and the strong euro had a noticeable dampening effect. Nevertheless, exports to the USA increased by 0.5 percent in the first half of the year, which can also be attributed to a stabilization of exports in the second quarter. A different picture emerges for exports to China, where exports fell by 13.8 percent. The European Union also performed better than average, achieving a stable result with a small increase of 1.3 percent. Here too, the overall positive result can be attributed to a positive quarter-end.
Within the EU, however, a mixed picture emerged: France and the Netherlands, ranked 3rd and 5th among the most important export countries, increased by 3.6 and 5.1 percent respectively. Italy, ranked 4th, had to cope with a slight decline of 0.5 percent. With an export share of 45.9 percent, the EU remained the most important sales region for machinery and equipment manufacturing from Germany.
Other Europe has an export share of 12.8 percent and was also able to record a slight increase of 0.5 percent compared to the previous year. Among the individual markets, the USA continued to lead with a share of 13.1 percent, followed by China (7.1 percent) and France (6.9 percent). In imports from the top 10 supplier countries, France (up 8.5 percent), China (up 8.0 percent), and Austria (up 4.7 percent) showed particularly strong growth.
Bright spots within the EU are particularly the exports to Denmark (up 22.5 percent) and Sweden (up 11.4 percent). Outside of Europe, India (up 11.1 percent) and Canada (up 10.0 percent) stood out positively with double-digit growth rates.
Outlook Cautious - Uncertainties Weighing
The outlook for the second half of the year remains uncertain. Military conflicts in the Gulf region are burdening the global economy, while tariffs on steel and aluminum derivatives and the threat of new tariff shocks are dampening the US business. The export decline that has persisted since 2022 in the China business is likely to continue. Consequently, the market is losing further weight for machinery and equipment manufacturing from Germany. Nevertheless, China remains one of the central export markets due to its still large share. The weak order intake from Eurozone countries dampens the outlook within the EU.
“Trade and geopolitical uncertainties remain a burden for the export business. The recent recovery of exports to the USA is still subject to an uncertain tariff policy. In China, weak demand and increasing competitive pressure dampen sales prospects. At the same time, the growing presence of Chinese suppliers in global markets intensifies competition. To diversify export markets, the industry urgently needs further free trade agreements and a more efficient European internal market,” summarizes Uhlig.
Download: Data Sheet on German Machinery Foreign Trade
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