Economic Situation - vdma.eu
Economic Development & Business Situation
The economic cycle plays a significant role in almost every area of the economy. After all, it plays a key role in determining the well-being of companies and employees. In fact, it is particularly relevant in the machinery and equipment manufacturing sector. After all, it plays a key role in determining the well-being of companies and employees in the mechanical engineering sector.
Mechanical engineering companies in Germany recorded a sharp decline in their order books in September. This also resulted in a slight drop in orders for the first nine months of 2025.
In our quarterly report, we provide you with information on India's macroeconomic development, as well as detailed information on the manufacturing industry and individual sectors with a particular focus on machinery & equipment.
Despite the slight recovery in incoming orders, the outlook for 2025 is largely sobering. There is cautious optimism for 2026, but trade, geopolitical and domestic political developments remain uncertainty factors.
In a difficult overall economic environment, the machinery industry continues to wait for substantial growth momentum.
The VDMA Business Survey Q3/2025 ran from September 16 to October 1, 2025. 1177 responses were received from 877 companies. The mood has deteriorated further.
In 2026, global machinery and equipment turnover is expected to grow by 2% on a price-adjusted basis. Growth in Asia will remain above average. Stagnation looms in the EU-27.
As in the previous year, demand for capital goods was weak in 2024. Machinery and equipment worth an estimated 3.26 trillion euros was sold worldwide, 1.5% less than in 2023.
Stay successful in a volatile market: VDMA offers an interactive report on European business climate indicators. Follow the developments of your most important European target markets and customer industries at a glance and make informed decisions based on current data.
Although the situation in supply chains has eased, prices remain an important issue. To get an overview of current developments, it is worth taking a look at the interactive report.
Trade conflicts, bureaucracy and rising costs are slowing down the mechanical engineering sector. Production will fall by 5 percent in 2025. VDMA President Kawlath calls for an "autumn of action".
The forecast for real German machinery production has been downgraded to -5% for 2025. Growth momentum is also expected to be weak in 2026 at 1%.
The Economics and Statistics department provides you with all industry-relevant economic and market information. Benefit from our expertise and use our statistics as a basis for smart business decisions.
The slight easing in order books in July is not a trend reversal: The hoped-for momentum in investments in mechanical engineering is still lacking. The promised relief must therefore come in the fall.
In the first half of 2025, price-adjusted production output in the EU machinery and equipment sector shrank by 3% compared to the previous year.
The quarterly report "Machinery & Equipment in China" contains relevant key figures such as production, sales, profit and investment trends in the local machinery and equipment industry as well as important customer industries in China.
The business outlook in the mechanical engineering sector remains virtually unchanged, while the mood among companies remains tense. There are significant differences between the sales regions.
Following last year's price-adjusted decline in turnover, global machinery turnover is expected to rise by a moderate 1 percent in price-adjusted terms in 2025.
Incoming orders in May were a positive surprise - albeit on a weak prior-year basis. Overall, companies have recorded a small increase in orders so far this year, but global uncertainty remains high.
Incoming orders in the mechanical engineering sector fell by 6% in real terms in April compared to the previous year. An expected setback, given the uncertainty caused by US tariff policy.
The global business situation in the mechanical engineering sector remains mixed. While India and Brazil are impressing with good figures, China is struggling with structural challenges. The USA is characterized by the latest tariff policy.
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The mechanical engineering sector started the year with a subdued export result. March at least showed a slight upward trend. However, the weaknesses in the Chinese and EU markets remain serious.
In 2024, German machinery exports to Latin America increased by 0.8% - after three previous years of strong growth. The Chart Pack provides facts and figures on the market.
Sentiment in the mechanical engineering sector improved somewhat at the start of 2025, but remains very mixed. A majority of companies do not expect slight growth again until 2026.
EU machinery and equipment manufacturing companies currently rate their competitive position as worse than the long-term average. This is particularly true to companies based in Germany.
In February, order books in the mechanical engineering sector filled up unexpectedly strongly by 8% in real terms. Part of this growth was due to large-scale plant business and part to component business.
Mechanical and plant engineering is one of the world's most important industrial sectors. We show the wide range of its economic indicators - presented in interactive charts and tables.
It's the same exercise every year: as part of the preparation of the management report, an overview of the overall economic development and the situation in the industry usually has to be provided.
The overall result for orders in 2024 in the mechanical and plant engineering sector is disappointing. The wait for a turnaround continues. Better framework conditions in Germany are an important aspect of this.
The mechanical engineering sector is feeling the effects of the recession - yet companies only reduced their workforce by just under 1% in 2024. Even now, the core workforce is to be retained as much as possible.
The mood in the mechanical engineering sector remains tense, with one in three companies rating their own situation as poor. Business prospects are a small ray of hope - but reforms are urgently needed.
A small ray of hope in orders from eurozone countries in November does not change the overall weather situation: orders in the mechanical engineering sector are not gaining momentum.
VDMA member companies see the US market as an opportunity and are cautiously optimistic about the coming years. Many are building on good or even very good competitiveness, but this must be defended.
Heavy seas and no calm in sight: the mechanical engineering industry expects a decline in production and a slight reduction in jobs in 2025. A political turnaround is needed to strengthen the industry.
Order books in the mechanical engineering sector remain weak, with 9% fewer orders booked in October than in the previous year. Customers remain hesitant to make new investments
A weak global economy and many structural problems at home are weighing on the export business in the mechanical engineering sector. Exports fell by a good 5 percent in the first nine months.
VDMA regularly generates data sheets with important indicators for its members. Raw data from various sources are processed for these. The latest data are provdided in our statistics database.
The VDMA statistics database offers all VDMA member companies fast and convenient access to economic information on all aspects of mechanical engineering.
In the last two years, the bottlenecks on the labor market for engineers have become much more acute. Never before has the mechanical engineering sector been looking for so many employees, and never before have there been so many vacancies for engineers.
The global mechanical and plant engineering industry reached a new record high in 2021. In euro terms, around 15% more machines were sold than in the previous year. China cracked the 1 trillion euro mark.
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In 2022, machinery and equipment sold worldwide was worth almost 3.4 trillion euros. In euro terms, this is around 12 percent more than a year earlier. In the TOP 10 country ranking, there were changes from seventh place onwards.
Mechanical engineering companies from Germany have to hold their own in an increasingly difficult economic environment. The year 2019 was marked by a weak global economy, increasingly harsh threats and sanctions in the global trade disputes, as well as a far-reaching structural change in the automotive industry.
As part of the ifo Business Survey, around 10,000 companies - including over 400 mechanical engineering firms - from Germany report their assessments of the current business situation, the outlook and much more important information to the economic research institute every month. Not a reporter yet? Then it is high time!
The brochure "Mechanical engineering - figures and charts 2022" provides a comprehensive overview of all the important statistics relating to mechanical engineering.
The Economy and Statistics Department in the VDMA collects industry relevant data and information that is not available from other sources in all its complexity. The information available includes:
A strongly rising order intake, better capacity utilization and a real production increase of 6.0 percent in the first four months of the current year: The economic momentum in the mechanical engineering industry is increasingly gaining momentum.
We have changed the survey on the economic situation for vacuum technology to a new digital format with the survey for the first quarter of 2021.
The German mechanical and plant engineering industry takes a fundamentally positive view of the German government's economic stimulus package. In terms of its thrust, it is suitable for triggering a surge in innovation, especially investment in climate technologies, digitization and drive systems in transition. In terms of tax policy, important steps to secure liquidity are planned. The historic sum of 130 billion euros commits to an efficient use of funds. Only in this way can competitiveness be strengthened after the crisis.
The ifo Business Survey regularly provides indicators that allow an assessment of the economic development as well as the mood in companies. These so-called leading indicators can provide important information for assessing the future course of business.
China's aggressive economic and trade policy is putting pressure on Europe's mechanical engineering sector. Together with VDMA Italia, Italian companies have discussed ways to deal with this situation.
In September 2025, incoming orders in the mechanical and plant engineering sector in North Rhine-Westphalia were slightly below the previous year's level. While domestic demand increased, foreign markets - particularly the eurozone - recorded a decline.
The order situation in Baden-Württemberg's mechanical engineering sector continued to deteriorate in September.
The order situation in Baden-Württemberg's mechanical engineering sector continued to deteriorate in September.
In September 2025, incoming orders in the Bavarian mechanical and plant engineering sector fell by 28% in real terms compared to the previous year
In this compilation of GTAI articles from 2024 on the pharmaceutical, biotechnology, life science and pharmaceutical sectors, you will find the markets and articles in chronological order.
Everything you need to know about worldwide sales, exports and imports
Domestic orders once again fell by double digits in August. There were also declines in sales.
Download the key figures (in German) here.
Download the key figures (in German) here.
Incoming orders in the mechanical engineering sector in Rhineland-Palatinate also showed a double-digit improvement in August. And sales are also rising across the board.
After an already weak previous month, business in August was also disappointing for building fittings manufacturers in Germany and abroad.
After good previous months, the turnover of industrial valves manufacturers continued to develop positively in August. Growth was recorded in Germany and abroad.
The Fluid Power Association presented its activity report at the general meeting on October 9–10, 2025, in Erfurt/Germany. It summarises key priorities and activities and provides an outlook on future directions.
Orders from the eurozone enable Order Plus. Sales are at a low level.
Monthly tracking of the market development of raw materials relevant to valves with a focus on steel and cast iron.
In July, the mechanical engineering sector in Saarland finally saw a slight increase in orders. However, there is still no improvement in turnover.
As an important service, VDMA Armaturen offers member companies regular updates on key industry facts relating to the building and industrial valves industry.
The mechanical and plant engineering industry in Baden-Württemberg continues to face major challenges.
The mood in the machinery and equipment manufacturing sector deteriorated further in the 3 quarter and the outlook has worsened noticeably. In addition to the customs conflict, the weakness in key customer industries is having an increasing impact.
Dr. Steffen Haack re-elected as Chairman - Forecast 2025: minus 2% (hydraulics) and minus 1% (pneumatics) nominal - Forecast 2026: slight nominal growth of 3% expected - Record level: 238 companies in the Fluid Power Association.
Monthly tracking of the market development of valve-relevant raw materials with a focus on non-ferrous metals
The Power Transmission Engineering Association presented its activity report at the general meeting on September 25/26 in Augsburg/Germany. It summarizes key focal points and activities and provides an outlook on the future direction.
We produce monthly data sheets on various sectors, categories and countries based on data from Euromonitor International. We publish these via the NuV-Telegram newsletter and make them available for download here.
In August, incoming orders in the food processing and packaging machinery sector were 11% higher in real terms than the low figure for the previous year.
In September 2025, 278 new fire fighting vehicles were registered in Germany.
India’s FDI Rise: A decade of decisive growth and global confidence
Bernd Neugart re-elected as Chairman - Forecast 2025: minus 5 percent in real terms - Forecast 2026: slight growth of 1 percent in real terms expected - Record membership: 223 companies in the Drive Technology Association
Information on the development of incoming orders for manufacturers of compressors, compressed air and vacuum technology can be found here.
Information on the development of incoming orders for liquid pumps can be found here.
In August, incoming orders were disappointing with a decline of 7% compared to the previous year. Orders from non-euro countries in particular fell sharply - an effect of US customs policy.
In August 2025, incoming orders in the Bavarian mechanical and plant engineering sector recorded an increase of 13% in real terms compared to the previous year
With a monthly update, which is exclusively available to VDMA member companies for download, we inform you about the development of price indices for process engineering goods.
On a monthly basis, our economic update gives a brief overview of the ecomomic situation of the construction equipment industry, e.g. order income, turnover, business climate and trade figures.
In August 2025, incoming orders in the mechanical and plant engineering sector in North Rhine-Westphalia were 2% down on the previous year.
Im August musste der baden-württembergische Maschinen- und Anlagenbau einen Orderrückgang von real 28 Prozent gegenüber dem Vorjahresmonat verzeichnen.
The construction equipment and building materials plant industry warns of long-term competitive disadvantages caused by market shifts on global markets and home-grown structural problems in Europe.
In this member information of the Food Processing and Packaging Machinery Association you will find an overview of the services offered by the VDMA in the area of markets and economy.
Foreign orders fell by double digits in July. Sales, however, showed positive growth rates almost across the board.
Rising turnover in July thanks to major orders.
The following summarizes the discussions with VDMA members' branches in Turkey and with Turkish mechanical engineering companies as well as the second meeting of VDMA members in Istanbul.
In July, Baden-Württemberg's mechanical and plant engineering sector recorded a 2% drop in orders in real terms compared to the same month last year.
The VDMA Building Technology Forum warns against rushed GEG changes. Instead of hasty decisions, clear, reliable, and practical rules are needed to preserve proven standards and develop them sustainably - turning reform into an industry opportunity.
European agricultural machinery and tractor manufacturers are currently operating in a difficult market environment.
The building technology sector offers key solutions for the energy transition – yet it shrank by 4 percent in 2024. The issue isn’t a lack of innovative technology, but rather a lack of political reliability in increasingly uncertain timeson
At the start of the world's leading trade fair drinktec, the industry is in robust shape. Exports continue to grow - by 6 in the first half of 2025 alone. Particularly strong: the EU-27 with 10.2%, the USA remains the most important single market.
Exports of food processing and packaging machinery will continue to grow in the first half of 2025, bucking the trend in the mechanical engineering sector as a whole.
The Japan Construction Report is provided by the VDMA team in Tokyo. It contains news of the construction, glass and ceramics industry of Japan and is published monthly. The most recent report can be downloaded from this website.
In August 2025, 216 fire-fighting vehicles were newly registered in Germany.
Current forecasts, key figures and background information on agricultural framework conditions, business and market development - worldwide, in Europe and in Germany.
Important questions on this topic
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How is the economic situation of the German machinery and equipment manufacturing industry developing?
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How is the international economic situation developing with regard to machinery and equipment manufacturing?
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How is the economic situation developing in the specialist branches of the German machinery and equipment manufacturing industry?
Events
Together with our host LESER GmbH & Co. KG, we would like to cordially invite you to the next WAI meeting with a pre-event on November 25/26, 2025 in Hamburg. On the evening before, November 25, we will meet for dinner together at the Port Restaurant in the Hotel Hafen Hamburg at 7:00 pm. The next day (26.11.), the WAI meeting will take place from 09:00 to 14:30 at our member company LESER GmbH & Co. KG in Hamburg.
The economic conditions and sales markets in the building valves industry remain volatile - and the "autumn of reforms" is still a long time coming. This makes it all the more important to maintain an overview: We cordially invite you to our next online economic update on building fittings - on 28. November 2025 from 10:00-11:30 a.m
What is the current state of the mechanical engineering industry and what are the prospects for 2026? What challenges need to be overcome and what setbacks are looming? We will also give you an insight into the economic policy activities of the VDMA 2025.
Further information coming soon
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