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FrankfortInternational trade disputes erupted in September over the activities of German machine builders. Customers from abroad have retained their orders. Overall, order intake did not reach the level of the same month last year, an additional advantage over previous months is not enough. This was announced Monday by the VDMA Industry Association in Frankfurt.
Orders from abroad decreased by 2%, adjusted for (real) price increases. "Companies are feeling the uncertainty of customers because of the many political initiatives, trade sanctions and protectionist announcements around the world," said VDMA Chief Economist Ralph Wiechers. In contrast, domestic orders rose 6%.
"Basically, do not panic a month of zero growth," said Wiechers. This year, there were even two months with negative rates. "However, we are seeing growth rates weaken." In addition, uncertainties such as the unresolved issue of Brexit, the trade dispute between the United States and China and the course of Italy's confrontation in the budget dispute with the European Union. "Nobody knows how that will end," Wiechers said.
Orders recorded in the third quarter of 2018 increased by 3% over the same period of the previous year. Home affairs, which had resumed rather late, would be much better than overseas business.
For this year, the VDMA is still forecasting 5% price-adjusted production growth. For 2019, the key export-oriented German industry badesses the outlook with more caution and badumes a two percent advantage.
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