Published by Global Banking & Finance Review®
Posted on January 8, 2026
2 min readLast updated: January 19, 2026
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German engineering orders increased by 7% year-on-year in November, driven by a 20% rise in orders from outside the euro zone.
In November, German engineering firms experienced a 7% year-on-year increase in orders, primarily due to a 20% rise in demand from countries outside the euro zone, according to the VDMA engineering association.
Domestic orders declined by 9%, highlighting a need for policy measures to stimulate internal demand. VDMA chief economist Johannes Gernandt urged policymakers to implement reforms such as reducing corporate taxes and easing bureaucratic constraints.
Foreign orders increased by 14%, compensating for the domestic market's weakness. This surge was driven by large-scale facility orders from outside the euro zone, emphasizing the global demand for German engineering.
For the three-month period from September to November, orders fell by 3%, with a 4% decline in foreign orders and a 2% decrease domestically. VDMA's Gernandt noted that no significant momentum is expected in the near term.
The continued rise in foreign demand underscores the global reliance on German engineering, yet domestic challenges persist. Policy reforms are crucial to balance this growth and ensure sustainable development in the domestic market.
The VDMA, or the German Engineering Federation, is an industry association representing the interests of German engineering companies, providing economic data and advocating for policy reforms.
Foreign demand is crucial as it offsets domestic market weaknesses, ensuring steady growth and highlighting the global competitiveness of German engineering products.
VDMA suggests reforms including lower corporate taxes, pension reform, reducing bureaucracy, and creating a more flexible labor market to boost domestic demand.
Economic growth refers to an increase in the production of goods and services in an economy over a period of time, typically measured by GDP.
Foreign investors are individuals or entities from one country that invest in businesses or assets in another country, often seeking to diversify their portfolios and capitalize on growth opportunities.
Business investment refers to the purchase of goods and services by businesses to enhance their operations, including equipment, facilities, and technology, aimed at increasing productivity and profitability.
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