Overseas orders boost Germany's mechanical engineering sector in June

Large orders from outside the eurozone boosted the order book of Germany's mechanical engineering sector in June, the German Machinery and Equipment Manufacturers' Association (VDMA) reported in Frankfurt on Wednesday.

Adjusted for price effects, the total value of all orders received in June was 21% higher than in the same month last year, the VDMA said. For the first half, the overall increase was 5%.

Strong orders from customers from non-eurozone countries, which grew by 16% in the first half of the year, contrast with declines in both the German market and the eurozone. Orders from German customers were 2% lower than a year earlier, while orders from countries in the eurozone fell by 8%.

"The growth in June was driven by large-scale plant business from non-eurozone countries. Eurozone partner countries are showing significant declines in order intake, partly because order intake in June 2025 was above average," VDMA economist Anke Uhlig said.

"Domestic business remains subdued. Uncertainty and reluctance to invest due to global crises remain high, and in Germany and Europe, there is an additional need for fundamental reforms to improve the business environment," Uhlig added.