According to the German Federation of Mechanical Engineering (VDMA), the German engineering sector recorded a sharp drop in new orders of 19 percent year-on-year in September 2025, reflecting the ongoing strain from the global trade crisis and weakening industrial demand.
The decline also contributed to a slight decrease in total orders in the first nine months of the year.
Basic effects mask a deeper structural weakness
VDMA chief Economist Dr. Johannes Gernandt said that part of the year-on-year decline is due to underlying effects, as September 2024 benefited from large-scale factory orders that were not repeated this year. "This should not hide the fact that the engineering industry continues to experience a marked decline in demand and underutilization," Gernandt warned.
He stressed that a sustainable recovery depends on resolving global trade disputes, including punitive U.
S. tariffs, as well as structural reforms in Germany and Europe to reduce the cost burden and boost investment.
The Federation confirmed its forecast of a five percent reduction in real production for 2025.
External demand is falling, the eurozone is more stable
Data for September 2025 show a five percent drop in domestic orders and a 24 percent drop in foreign orders. Orders from the eurozone countries fell by 13 percent, while orders from non-eurozone countries decreased by 27 percent.
In the third
