German mechanical engineering is seriously affected by the economic crisis. In April 2009 the order intake was down by 58% (in real terms) as compared to the respective month in 2008. This fact was reported on Thursday by the Association of German mechanical and plant engineering (VDMA) in Frankfurt. A particular sharp drop was registered with regard to foreign demand. Business with foreign customers dropped by 60% as compared to April in 2008, while the volume of domestic orders fell by 52%.
Comparing the three-month period from February to April this year with that in 2008, the decrease in incoming orders amounted to 47% with domestic orders dropping by 46% and those from abroad by 48%.
According to the VDMA chief economist, Dr. Ralph Wiechers, the massive drop in April was exacerbated by the fact that last year German mechanical engineering registered record volumes of incoming orders with particularly many major orders. Furthermore, there is a certain calendar effect to be taken into account due to the Easter holidays. According to Mr. Wiechers, the end of this negative development is currently not yet in sight. Only some early indicators gave reason for some hope. 