In the third quarter of 2013, order bookings in the German machine tool industry rose by four percent year on year, according to the German Machine Tool Builders' Association (VDW). Given the dominance of the German industry in the mechanical engineering sector, data released by the VDW are seen as a barometer for general business conditions in the EU.
Domestic orders in the German machine tool industry in the third quarter this year increased 12 percent, while export orders were up by six percent, both compared to the same quarter of 2012. In the first nine months of this year, order bookings in the German machine tool industry fell by six percent year on year. Domestic orders in this period were down by 10 percent and export orders fell by four percent, both on year-on-year basis.
"Demand for machine tools has achieved the long-awaited turnaround," said Dr. Wilfried Schäfer, executive director of the sectoral organization at the VDW. In the first three quarters, order levels from China, which is the largest market, continued to fall, related to the Chinese government's reviewing the entire investment program of the ongoing five-year plan. However, contrary to expectations, Western Europe's orders were higher than expected. Order bookings in Central and South America also showed double-figure growth. In Asia, the figures were up in South Korea and Southeast Asian countries.