The German mechanical and plant engineering sector closed the first half of 2025 with a small increase in orders of 1% - mainly thanks to rising demand from the euro countries. While orders in June were 5% down on the previous year's figure overall, the impetus from the eurozone was the main driver for the half-year.
“This growth is solely due to rising demand from the euro countries and should be a positive sign that Europe is actually in the process of strengthening its own location,” explains VDMA Chief Economist Dr. Johannes Gernandt. In contrast, the drop in orders of 2 percent in real terms in the second quarter reflects the uncertainty caused primarily by the smouldering tariff dispute between the EU and the USA. "It is not yet possible to estimate what impact the proposed 15 percent tariff on imports to the USA will have on the mechanical engineering sector. Nevertheless, companies now have planning security at a high price - if the ‘deal’ lasts," says Dr. Gernandt.
In June, domestic and foreign orders both fell by 5%. A strong increase of 16% from euro countries was offset by a decline of 13% from non-euro countries. In the second quarter, companies recorded a 2% drop in domestic orders and a 1% drop abroad (euro countries: plus 19%, non-euro countries: minus 9%).
For the first half of the year, domestic orders fell by 1%, while orders from abroad rose by 2%. Orders from the eurozone increased by 16%, while those from non-euro countries fell by 3%.
