Headlines
German engineering orders plummet in September
Published by Global Banking & Finance Review®
Posted on November 3, 2025
2 min readLast updated: January 21, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on November 3, 2025
2 min readLast updated: January 21, 2026
German engineering orders dropped 19% in September due to base effects and last year's special orders, with significant declines in both domestic and foreign markets.
BERLIN (Reuters) -German engineering orders plummeted in September, with a double-digit percentage decline driven by a base effect abroad and one-off special effects last year, the VDMA engineering association said Monday.
Overall orders dropped by 19% year on year in September, with domestic orders down 5%, while those from abroad fell 24%.
Euro zone orders were down 13% in September while there was a 27% decrease from non-euro zone partner countries.
The tumble was mainly due to a base effect abroad, said VDMA chief economist Johannes Gernandt, and there were also special effects last September due to orders for large-scale plants.
However, those drivers "should not obscure the fact that the mechanical engineering industry continues to experience a noticeable slump in demand and underutilisation," said Gernandt.
This will only fundamentally resolve itself when the many crises in global trade, such as those surrounding the U.S. tariffs, are resolved and reforms are implemented in Germany and Europe that really take the pressure off companies, he said.
In the less-volatile July-to-September period, orders overall fell 6%, with domestic contracts dipping 3% and foreign ones down 7%.
CHANGE
SEPTEMBER
overall -19% y/y
of which German -5% y/y
foreign -24% y/y
-6% y/y
JULY TO SEPT
of which German -3% y/y
foreign -7% y/y
(Reporting by Miranda Murray, Editing by Friederike Heine)
A base effect refers to the impact that the previous year's data has on the current year's performance metrics, often distorting year-on-year comparisons.
The VDMA, or Verband Deutscher Maschinen- und Anlagenbau, is the German Engineering Federation that represents the interests of the mechanical engineering industry in Germany.
Domestic orders are requests for goods or services that are placed within a country's borders, reflecting local demand in the economy.
Underutilisation occurs when resources, such as labor or machinery, are not being used to their full potential, often leading to inefficiencies in production.
Euro zone orders refer to the demand for goods and services from countries that use the euro as their currency, indicating economic activity within that region.
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