German Plant and Equipment Orders

BERLIN (Reuters) – German plant and equipment makers’ orders grew slightly in the final month of last year due to big-ticket contracts from abroad, but 2024 as a whole marked the second straight year of decline as firms await a turnaround, the VDMA association reported on Wednesday.

Overall orders from January to December 2024 were down 8% compared to the previous year in real terms, with domestic orders tumbling 13% and foreign orders down 5%.

> “The wait for a turnaround continues. We are lacking momentum in important sales markets, especially a better mood in the domestic market,” said VDMA economist Olaf Wortmann.

Wortmann noted that a 1% rise in overall orders in December was not indicative of a broad-based positive trend but rather a fluctuation due to major orders from non-euro zone regions.

Foreign orders jumped 9% in December, driven by orders from outside the currency union up 13%, whereas domestic orders fell by 19%.

In the less-volatile three-month period from October to December, overall orders were down 5%, with a 7% decline in domestic orders and a 4% decline in foreign ones.

With federal elections set for Feb. 23, Wortmann urged the next German government to take prompt measures to support the interests of the country’s export-oriented small and medium-sized businesses.

December Change

• Overall: +1% y/y
• Domestic: -19% y/y
• Foreign: +9% y/y

October to December Change

• Overall: -5% y/y
• Domestic: -7% y/y
• Foreign: -4% y/y