VDMA: Large orders result in a double-digit increase
By Andreas Plecko
FRANKFURT (Dow Jones) – The German mechanical and plant engineering companies have reported full order books for November. Incoming orders exceeded the previous year’s level thanks to a number of large orders by 23 percent in real terms, as announced by the Association of German Mechanical and Plant Engineering (VDMA). Domestic orders rose by 16 percent, orders from abroad rose by 27 percent. “The double-digit growth rates compared to the previous year should not hide the fact that the time of extremely high dynamics is over,” said VDMA chief economist Ralph Wiechers.
Compared to the number of orders in the previous months, the growth in orders is now less strong, which is not a cause for concern in view of the often well-filled order books. “The economy in many countries is still on its toes, but the pent-up demand of our customers has now largely been satisfied. The orders that are now being placed are mainly intended for new, sometimes large, investment projects,” said Wiechers.
In the three-month period from September to November, which is less prone to fluctuations, orders increased by 35 percent compared to the previous year. 10 percent more orders came from within Germany, while orders from abroad rose by 48 percent. An increase of 36 percent was posted from the euro countries, and 43 percent more orders came from the non-euro countries.
The VDMA represents around 3,400 medium-sized mechanical and plant engineering companies. The industry employs around four million people in Europe, more than a million of them in Germany alone.
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(END) Dow Jones Newswires
January 10, 2022 04:00 ET (09:00 GMT)