In the second quarter of this year, order bookings in the German machine tool industry increased by 10 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 second quarter of the current year increased by three percent, while export orders were up 14 percent, both compared to the same quarter of 2014. Meanwhile, there was six percent growth in orders from the euro zone and a 16 percent increase from non-euro zone countries, both year on year.
"After a decline in the first quarter of 2015, orders recovered again in the second quarter. This means that the German machine tool industry has presented a balanced half-year balance sheet," said Dr. Wilfried Schäfer, executive director of the VDW, commenting on the increase in orders in the second quarter of this year. The VDW stated that the increase in orders was mainly due to the significant increase in demand from abroad. Domestic business continues at a satisfactory level despite percentage cuts triggered mainly by the base effect of strong figures in the equivalent period last year, the VDW added.