The German machine builders are increasingly suffering under the weak economy. In August, orders fell compared to the same month last year to 17 percent, as the industry Association VDMA said.
“As feared, the previous months with single-digit rates of decline is just a breather,” said VDMA economic expert Olaf Wortmann. The domestic orders, price-adjusted decline of twelve per cent, orders from abroad declined by 19 percent. These Figures of the VDMA (Verband Deutscher Maschinen – und Anlagenbau) published on Friday.
Over the years, spoiled by success industry, with more than a Million employees, an important pillar of the German economy. The manufacturers, including, many medium-sized companies, but also listed companies such as Thyssenkrupp, Siemens or Gea, had to be screwed because of the reluctance of customers already have their production forecast for 2019 to the bottom.
The machine builders remain pessimistic
In the coming months, the export-oriented German industry expects no change for the Better. “The Ifo business export expectations indicates that the machine Builder are set in view of the economic and political risks continue to be pessimistic,” said Wortmann.
International trade conflicts and the uncertainties of the Brexits a burden on the business. Upset customers at home and abroad are holding back with orders. Add to this the structural change in the auto industry, a major customer of the industry. In the Three-month comparison of June to August 2019, orders fell by eight per cent year-on-year.
Since the beginning of the year, orders have steadily decreased. For this and the coming year, the VDMA expects a decline in production of two percent. In the past year, the industry had achieved a Plus of two percent.
dk/bea (rtr, dpa)