German machinery orders fall due to Ukraine war, supply problems

New orders for German-made machinery and plant engineering work fell in April by 7% in real terms compared with a year ago, the Mechanical Engineering Industry Association (VDMA) reported from its Frankfurt headquarters on Friday.

The fall in domestic orders was as high as 17%, while the decline in orders from the euro area was just 1%. The decline from outside the euro area was 3%.

The VDMA attributed the decline to “the Russian war in Ukraine, together with continuing serious supply chain problems.”

VDMA chief economist Ralph Wiechers said several factors were behind the falls.

“Especially in domestic business, a high figure from the previous year figure also played a role in the significant decline. Overall, orders suffered from the slowing economy in China, numerous production hindrances and the direct and indirect consequences of the Ukraine war,” he said.

In the less volatile three-month period from February to April, plant and machinery orders fell by 1% compared to the previous year. Domestic orders were down 3%, while foreign orders were level.

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