Successful end to the year on the order books
Incoming orders in the mechanical engineering sector in Germany increased by 7 percent in real terms in December compared to the previous year. Orders from abroad recorded an increase of 5 percent.
The stimulus for this came purely from non-euro countries (growth of 10 percent). Orders from euro partner countries fell short of the previous year's level by 8 percent, albeit last year was a very successful year. "The strong increase in domestic demand is particularly encouraging, with a growth rate in the double digits (plus 11 percent)," says VDMA Chief Economist Dr. Ralph Wiechers.
"The strong increase in domestic demand is particularly encouraging, with a growth rate in the double digits"
Overall, 2017 ended with a plus of 8 percent on the order books for the mechanical engineering sector. However, the gap between domestic demand and demand from abroad remains large. While orders from abroad increased by 10 percent, domestic orders only increased by 5 percent. "The future federal government is called upon to make sure that Germany's future is not in danger from too few investments. The government must create policies which encourage growth," explains Wiechers. "But the parties involved in collective bargaining also share that responsibility not to stifle the gradually increasing domestic investment."
In the three months from October to December 2017, incoming orders increased by 10 percent in real terms compared to the previous year. Domestic orders increased by 13 percent, orders from abroad by 9 percent. Euro countries increased by 6 percent and the non-euro countries by 10 percent.