German engineering orders fall 5% in August amid absence of big contracts

German Engineering Orders Fall 5% in August 2026 as Big Contracts Disappear

German Mechanical and Plant Engineering Sector Faces Decline in Orders

Overview of August 2026 Order Performance

BERLIN, Oct 5 (Reuters) - Orders in Germany's mechanical and plant engineering sector fell 5% in real terms in August from a year earlier, as the absence of large-scale contracts weighed on demand after two months of growth, industry association VDMA said on Monday.

Domestic orders declined 2%, while foreign bookings fell 6%.

Orders from euro zone countries fell 10%, twice the decline in non-euro countries.

Expert Commentary on Sector Performance

"After two months of growth, this result is a slight dampener. However, it should be noted that, unlike a year ago, there were no large plant orders in August this year," VDMA chief economist Johannes Gernandt said.

Year-to-Date Trends and Contributing Factors

The sector posted a 4% increase in orders in the first eight months of 2026, although Gernandt said that was partly due to a weak prior-year comparison and a high volume of large orders booked in March and June.

Investment Momentum and Economic Outlook

"There is still a lack of new investment momentum that would point to a sustained economic upswing," he said.

Three-Month Period Analysis: June to August 2026

In the less volatile three-month period from June to August, orders rose 7% in real terms from a year earlier.

Foreign and Domestic Demand Breakdown

Foreign demand increased 11%, offsetting a 1% decline in domestic orders.

Orders from non-euro countries rose 19%, while bookings from euro zone countries fell 9%.

Key Figures at a Glance

AUGUST CHANGE

overall -5% y/y

of which German -2% y/y

foreign -6% y/y

JUNE TO AUGUST +7% y/y

of which German -1%% y/y

foreign +11% y/y

(Reporting by Friederike Heine, editing by Thomas Seythal)