German Orders in September Decline

BERLIN (Reuters) – Orders for plant and equipment in Germany fell in September after a temporary rise in August, according to the VDMA association. This decline was due to a significant drop in domestic contracts, while foreign orders remained stable.

Overall, orders decreased by 4% in real terms year-on-year for September, following a 7% increase in the previous month. Domestic orders experienced a sharp decline of 16%, but foreign contracts were stable, bolstered by large-scale plant projects.

The downturn in the industry was more pronounced in the nine-month figures, which revealed an 8% annual decline in orders from January to September.

In the less volatile three-month period from July to September, orders were 1% lower overall. Domestic contracts fell by 9%, while foreign orders saw a 2% increase.

Olaf Wortmann, an economic expert from VDMA, noted, "The weak domestic demand is not surprising; companies are unsettled. There is a lack of impetus from various sales markets." Additionally, he indicated that a clear, business-friendly approach from the German government is missing, which could stimulate new investments.

The coalition partners are focusing on reviving the economy, engaging with industry associations and business representatives as Europe's largest economy is poised to contract for the second consecutive year.

September Change

• Overall: -4% y/y
• Domestic: -16% y/y
• Foreign: +0% y/y

July to September

• Overall: -1% y/y
• Domestic: -9% y/y
• Foreign: +2% y/y