In January the orders received by the German mechanical engineering sector were six per cent below the previous year’s level in real terms. This is the result of a current survey by the Verband Deutscher Maschinen- und Anlagenbau (VDMA, or German Engineering Federation) of its members. Domestic business fell by nine per cent in annual comparison and foreign business by four per cent.

In the three month comparison from November 2011 to January 2012, which is less influenced by short term fluctuations, there was a total minus of nine per cent on the previous year’s period. Domestic orders were four per cent lower and there was a fall of twelve per cent in foreign orders. Nevertheless, with reference to positive early indicators, the VDMA hopes that orders will stabilise again but does not exclude falls in the coming months.

In engineering the number of orders received in March 2011 was 18 per cent of the previous year’s level in total. This was reported by the Verband der Maschinen und Anlagenbauer (VDMA, or German Engineering Association). Domestic business and exports are developing in parallel to each other: both domestic demand and foreign business rose by 18 per cent.

In a quarterly comparison engineers posted a plus of 32 per cent in comparison with the same period in the previous year. With triple digit growth machine tools manufacturers achieved particularly outstanding values. At the same time the association is talking about a normalisation of growth rates, because March 2010 was the first month of strong orders after the crisis and the basis effect is continually declining.