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.
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.
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 special focus on machinery & equipment.
The US tariffs are putting VDMA member companies under severe pressure. Almost half of the companies are reporting a decline in incoming orders and many are reporting significant falls in sales.
Incoming orders were disappointing in the first ten months. The euro partner countries are a ray of hope. There is cautious optimism for 2026, but trade, geopolitical and domestic political developments remain uncertainty factors.
The forecast for real German machinery production was confirmed at the VDMA annual press conference at -5 percent for 2025. Growth momentum is also expected to remain weak in 2026, at +1 percent.
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 new VDMA economic report shows a relatively robust US machinery industry despite a volatile environment. Now exclusively for members - with interactive charts and current economic data.
Economic development varies greatly around the world. Signs of recovery are still weak at present. There has been an extensive revision of data in the USA.
Incoming orders in the mechanical engineering sector rose by 4% in real terms in October compared to the previous year. This was driven by non-euro countries. The growth is pleasing, but only represents consolidation at a low level.
The quarterly report "Machinery & Equipment in China" contains relevant key figures such as production, sales, profit and investment trends in the local mechanical engineering industry as well as important customer industries in China.
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.
The global economy is in a phase of reorientation, characterized by uncertainty, fragmentation and technological transformation.
The global business situation in the mechanical engineering sector shows light and shade - with significant regional differences. Positive signals are coming from India and Brazil, while the business situation in China and the USA remains difficult.
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.
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.
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.
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.
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 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 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.
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.
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 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.
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.
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 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.
Research exclusively for participants in our monthly survey
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.
Technology, competition, prospects - Dr. Marcus Wirtz, Chairman Mining & Minerals, in an exclusive VDMA interview.
On November 6, 2025, members of VDMA Laser met in Frankfurt. The meeting provided insights into market trends, international developments and strategic challenges in laser technology – from China policy to future technologies.
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.
‘The society we live in is built on metal.’ This is how Stefan Romedahl, President of the Swedish company Boliden Mines, expressed it at the VDMA Mining & Minerals Industry Meeting.
In October, incoming orders in the food processing and packaging machinery sub-sector were 7% down on the previous year in real terms. Domestic orders were up 30% on the previous year, while orders from abroad fell by 14%.
Monthly tracking of the market development of valve-relevant raw materials with a focus on non-ferrous metals
Overview of Indian Economy
Download the key figures (in German) here.
Download the key figures (in German) here.
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 November 2025, 288 new fire department vehicles were registered in Germany.
After a slightly stronger previous month, sales of building fittings manufacturers in Germany and abroad were on a clear downward trend in October.
After successful previous months, industrial valves manufacturers' sales increased again in October. Both domestic and international business developed positively.
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.
Batam’s BBK SEZ emerges as a cost-efficient hub for manufacturing, logistics, and digital services. When linked with Singapore and Johor, the tripartite sees potential to strengthen regional supply chains and reshape the future of a tri-hub network.
The working group deals intensively with the topics of market observation and statistics for pneumatics. The working group meets twice a year and is chaired by Heiko Kurtz, Bürkert GmbH & Co KG, Ingelfingen.
The Oil Hydraulics Market Investigation Working Group meets twice a year. The participants find out about the economic situation in mechanical engineering and fluid technology in particular and discuss current trends in mechanical engineering.
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.
Incoming orders in the Bavarian mechanical and plant engineering sector recorded an increase of 21% in real terms in October 2025 compared to the previous year
The order situation in Baden-Württemberg's mechanical and plant engineering sector stabilized slightly in October.
In October 2025, incoming orders in the mechanical and plant engineering sector in North Rhine-Westphalia were 1% higher than in the previous year.
Monthly tracking of the market development of raw materials relevant to valves with a focus on steel and cast iron.
Sales growth of 1 percent forecast for 2025; data economy as the key to new business models; material selection via digital tool: VDMA supports expansion of the materialHUB platform
As an important service, VDMA Armaturen offers member companies regular updates on key industry facts relating to the building and industrial valves industry.
In September, incoming orders in the mechanical engineering sector in Rhineland-Palatinate again showed a double-digit improvement. Only the domestic market is weakening in terms of sales.
The Chairman of the Metallurgy Association, Till Schreiter, outlined the situation of metallurgical plant engineering in light of current geopolitical and economic upheavals in a keynote speech at the Hüttentag 2025.
Forecasts, key figures and background information on agricultural conditions
Few orders in September 2025, sales are developing better.
In August, the mechanical engineering sector in Saarland once again saw a significant decline in orders. In terms of turnover, the eurozone grew again for the first time since September 2024.
An overview of all offers of the trade association for market observation, market information and user industries.
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.
On behalf of the VDMA Germany Trade and Invest (gtai) publishes reports on the construction industry of selected markets.
In October 2025, 279 new fire department vehicles were registered in Germany.
Exclusive country reports for VDMA members to monitor developments in the automotive industry and its suppliers, provided by VDMA Plastics and Rubber Machinery Association
Incoming orders increase in the third quarter
In September, incoming orders in the food processing and packaging machinery sector (NuV) were 5% higher in real terms than in the previous year. Domestic orders fell by 19%, while orders from abroad increased by 10%.
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.
CECE has launched the new platform www.compliantconstructionmachinery.eu, a key resource for customers, users, customs officials, and market surveillance authorities.
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
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.
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.
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.
In July, the mechanical engineering sector in Saarland finally saw a slight increase in orders. However, there is still no improvement in turnover.
The mechanical and plant engineering industry in Baden-Württemberg continues to face major challenges.
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?
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The Industrial Valves Business Committee brings together managing directors, sales and marketing managers to discuss the current economic situation and industry trends in the industrial valves sector.
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