The German Machinery and Equipment Manufacturers Association recently reported that orders in the machinery sector dropped by 3% year-on-year in July, with domestic demand rising by 10% but international orders declining by 9%. This decline is partly attributed to the challenging global economic climate. In the first half of the year, total exports from the German machinery manufacturing industry fell by 3.2%, marking a potential end to three consecutive years of export growth.
According to the association’s latest data, Germany’s machinery sector exported approximately €73.5 billion (around $98.4 billion) during the first six months of the year. The decline was uneven across quarters—exports fell by 5.8% in the first quarter and 2.2% in the second. The association noted that nearly all major export markets for German machinery experienced contraction during this period.
Looking at specific regions, exports to Europe decreased by 3.3% year-on-year, while Asian markets saw a 4% drop, with exports to India falling sharply by 15.6%. Meanwhile, U.S. exports remained stagnant, and the North American market also showed signs of decline, shrinking by about 2%.
Ralph Wischers, the association’s chief economist, stated that the downward trend in machinery exports is likely to continue in the second half of the year, though the pace of decline may slow down. He pointed to some positive signals suggesting an improvement in the broader economic environment later in the year.
Germany remains the world’s largest exporter of machinery and equipment, and the machinery sector is one of the country's most significant job creators. Since 2003, the industry has seen steady growth in both output and exports, although it faced a major setback during the 2009 financial crisis. Following that, the sector rebounded and achieved three consecutive years of growth, returning to pre-crisis levels by 2012.
In 2012, the German machinery manufacturing industry generated sales of around €207 billion ($277.1 billion), with roughly 75% of that coming from exports. This contributed to a substantial trade surplus of approximately €93 billion ($124.5 billion). The industry continues to play a vital role in Germany’s economy, and its performance remains closely watched as the global market evolves.
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