According to the German Federation of Mechanical Engineering (VDMA), the German engineering industry ended 2025 with order acceptance at the same level as in the previous year, resulting in zero real growth overall. The result was mainly supported by a seven percent increase in orders from eurozone partner countries, while domestic orders decreased by one percent and orders from non-eurozone countries fell by two percent for the full year.
December decline caused by weaker external demand
In December, orders decreased by five percent year-on-year. The decline was largely due to weaker external demand, as orders from non-euro area countries fell 11 percent, partly due to strong activity in large orders in the same month of the previous year. Orders from the eurozone countries decreased by three percent, bringing the overall decline in foreign orders to nine percent. However, domestic orders increased by seven percent compared to December 2024.
The stabilization of the fourth quarter indicates modest growth in 2026
Despite the weak monthly result, the fourth quarter of 2025 showed signs of stabilization. Total order acceptance in the October-December period increased by three percent in real terms compared to the same quarter last year. Domestic orders remained stable, while foreign orders increased by four percent overall, with a two percent decrease in orders in the euro area and a six percent increase in orders outside the euro area.
According to the chief economist of the VDMA
