Orders from Germany declined by 11% whereas those from abroad rose by 1%. The level of orders fell by 7% overall in the first half of the year. Domestic orders were 15% down on last year, whereas orders from abroad were down by 4%. This represents a 13% drop in orders in real terms.
"There was a further surprising increase in order intake at the end of the second quarter, similar to March," reportED Dr. Wilfried Schäfer, executive director of the VDW (German Machine Tool Builders' Association), Frankfurt am Main.
The main impetus came from the euro countries in the second quarter. The increase in orders which materialized at the end of the second quarter applied to both machining and forming equipment.
"We know from experience, of course, that the result of a single month does not signal a turnaround," Schäfer continued.
Rather, the fluctuations were attributable to project business, particularly to forming technology. In addition, orders from growth sectors such as e-mobility, wind power, aerospace and defense are boosting order intake levels.
The conventional machine business, on the other hand, was somewhat weaker, as small and medium-sized customers are unsettled and are postponing investments. Credit-financed machine purchases are also becoming more challenging due to the rise in interest rates.
Sales remained steady at a high level. In nominal terms, it grew by 21% in the first half of the year, and by 13% in real terms. Capacity utilisation rose again slightly in July this year, from 88.3 to 90.5%.
The order backlog is dropping relatively slowly. "Accordingly, the VDW forecast of 10% growth in production in the current year remains valid," concluded Schäfer.
Foreign markets continue to represent the principal driving force, and Asia is the only region with a positive balance sheet.
