VDMA: Orders received by the German mechanical engineering industry continue to decline in May
In May, domestic demand contracted by 23 percent and orders from abroad fell by 31 percent. Orders from the euro zone were 27 per cent down on the previous year's level, with 32 per cent fewer orders coming from non-euro countries. " Nevertheless: Our companies have been spared an even more severe slump, at least so far," says VDMA Chief Economist Dr. Ralph Wiechers.
In April, the order intake had already shrunk by 31 percent compared to the previous year. "In April and May, the great uncertainty of many customers was clearly felt. In the meantime, expectations have recovered somewhat. However, we still cannot estimate when the situation will ease off sustainably," says Wiechers.
In the less volatile three-month period from March to May 2020, order intake fell by 22 percent in real terms compared with the previous year. Domestic orders were down 16 percent, while foreign orders were down 25 percent on the previous year. Orders from the euro countries shrank by 24 percent, while orders from non-euro countries were down 25 percent.