The order intake by the German mechanical engineering industry increased by 7% in real terms in September 2007 as compared to the same month in 2006. According to the German Association for Mechanical Engineering (VDMA), the domestic business grew by 1%. Foreign demand increased by 10% as compared to September 2006.
In the period from July to September 2007 the order intake increased by 12% as compared to the same period in 2006 with domestic order intake growing by 8% and that from abroad by 14%.
For the first time in 15 months the order intake by German mechanical engineering grew by a one-digit percentage. The domestic business grew by just 1% which is only a very slight increase. Dr. Ralp Wiechers, who is the VDMA´s chief economist, guesses that this could be due to the fact that certain tax reducing effects such as declining depreciation will cease to exist by the end of this year.
Furthermore, Mr. Wiechers argues that while foreign demand is significantly (by 10%) higher than last year, it is, however, losing momentum. Nevertheless the slight decline does not give rise to any concern and the upward trend does still continue, reassures Mr.Wiechers.