The mechanical and plant engineering sector is cautiously signalling stabilization at the end of 2025. After several weak months, order intake has recently recovered noticeably, driven primarily by rising foreign demand, reports the VDMA.
The increase in orders in October was followed in November 2025 by a real increase in orders of 7 percent compared to the previous year. For the eleven months from January to November 2025, this results in overall stagnation at the previous year's level in the order books. At the end of the first half of the year, orders were still slightly above the previous year's level, before several months of sometimes significant declines followed. Domestic business remained weak in November, with a decline of 9 percent.
VDMA: Foreign orders increase significantly
Foreign orders, on the other hand, rose by 14 percent. Non-euro business benefited from a high volume of orders for large-scale plants, achieving real growth of 20 percent. Orders from the eurozone, on the other hand, increased by only 2 percent. VDMA Chief Economist Dr. Johannes Gernandt does not expect any real momentum in orders for the coming year that would enable significantly stronger growth.
“Federal policy remains obliged to strengthen domestic demand in particular,” said Gernandt. “We are pleased to hear Chancellor Merz's announcements that stimulating the economy is now a top priority. But words must now be followed by deeds. This urgently requires tangible reforms that relieve the burden on small and medium-sized industrial companies.” Among other things, he mentions lower corporate taxes well before 2028, pension reform, a more flexible labor market, and consistent bureaucracy reduction.
In the less volatile three-month period from September to November 2025, companies recorded an overall real decline in orders of 3 percent. Domestic orders fell by 4 percent, while foreign business recorded a decline of 2 percent. Orders from eurozone countries fell by 5 percent, while orders from non-eurozone countries remained stable.
