8 percent less orders for German mechanical engineering

The order intake by German mechanical and plant engineering was down by 8% in real terms in July this year as compared to July 2007. The number of orders from within Germany fell by 1% and that from abroad by 11%. Taking into account the period from May to July 2008 the decrease amounted to 8% as compared to the same period last year with domestic and foreign demand falling by 4% and 10% respectively. These figures were recently published by the association for German mechanical and plant engineering (VDMA).

This association said that in July the number of orders received by mechanical and plant engineering was significantly below that of last year. The order intake from within Germany, however, was only marginally below the “impressing high level” of July 2007. It seemed that foreign demand had sharply fallen, but this impression is due to a basic effect which distorts the real situation, said the chief economist of the VDMA, Dr. Ralph Wiechers, relatifying this figure. In July 2007 there had been extremely many major orders for plant from abroad which was not the case in July this year, according to Mr. Wiechers. GERMAN